Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. That said, here are three value stocks trading at big discounts to their intrinsic values.
Qualcomm (QCOM)
Forward P/E Ratio: 13.4x
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Are We Fans of QCOM?
- Solid 11.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Qualcomm’s stock price of $157.95 implies a valuation ratio of 13.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Cigna (CI)
Forward P/E Ratio: 10.2x
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Could CI Be a Winner?
- Annual revenue growth of 18.1% over the past two years was outstanding, reflecting market share gains this cycle
- Unparalleled scale of $255.3 billion in revenue enables it to spread administrative costs across a larger membership base
- Earnings per share grew by 9.1% annually over the last five years, comfortably beating the peer group average
Cigna is trading at $315.29 per share, or 10.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
HCA Healthcare (HCA)
Forward P/E Ratio: 14.6x
With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.
Why Is HCA a Good Business?
- Dominant market position is represented by its $71.59 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.7% exceeded its revenue gains over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $378.98 per share, HCA Healthcare trades at 14.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today