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2 Value Stocks with Promising Prospects and 1 Facing Challenges

SLGN Cover Image

Value investing has produced some of the world’s most famous investing billionaires, including Warren Buffett, David Einhorn, and Seth Klarman, who built their fortunes 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.

Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. Keeping that in mind, here are two value stocks offering compelling risk-reward profiles and one best left ignored.

One Value Stock to Sell:

Silgan Holdings (SLGN)

Forward P/E Ratio: 11.6x

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Why Should You Sell SLGN?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Gross margin of 16.8% reflects its high production costs
  3. Low free cash flow margin of 1.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Silgan Holdings’s stock price of $42.86 implies a valuation ratio of 11.6x forward P/E. To fully understand why you should be careful with SLGN, check out our full research report (it’s free).

Two Value Stocks to Watch:

Cigna (CI)

Forward P/E Ratio: 8.9x

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 Does CI Stand Out?

  1. Annual revenue growth of 18.8% over the past two years was outstanding, reflecting market share gains this cycle
  2. Massive revenue base of $267.8 billion gives it meaningful leverage when negotiating reimbursement rates
  3. Earnings per share grew by 8.1% annually over the last five years and topped the peer group average

At $272.95 per share, Cigna trades at 8.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Raymond James (RJF)

Forward P/E Ratio: 14.4x

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Why Will RJF Outperform?

  1. Solid 12% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 21.2% to outpace its revenue gains
  3. Impressive 14.4% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Raymond James is trading at $171.78 per share, or 14.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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