Sharp market declines, warnings from major bank CEOs and high profile short bets against leading AI stocks have pushed many investors to rethink what they are willing to pay for growth stories. When frothy areas are under pressure, attention often shifts to companies that already look reasonably priced on measures like P/E and price to book. This article looks at how that backdrop connects to value opportunities exposed to the recent AI driven sell off, and walks through 3 stocks from our Value Stocks screener that appear positively positioned according to those value and quality filters.

Aaron's Company (AAN)

Overview: Aaron's Company provides lease to own and retail purchase options for furniture, appliances, electronics, computers, and other home products across the United States and Canada through its Aaron's and BrandsMart stores, franchises, e commerce sites, and in house furniture manufacturing.

Operations: Aaron's Company generates about US$1.50b in revenue from Aaron's Business and US$584.4m from BrandsMart, with a small intersegment offset of US$10.5m. All reported revenue of roughly US$2.07b comes from the United States.

Market Cap: US$306.8m

Investors looking at Aaron's Company may find an interesting contrast to expensive AI stocks that have just been hit by the recent pullback. The business focuses on lease to own retail, which can produce steady cash flows. The stock trades at a discount on earnings and book value, with a very low P/S of around 0.1x versus peers. However, Aaron's is currently loss making, return on equity is weak, and a near 5% dividend yield is not well covered, so the payout carries risk. With earnings expected to recover over the next few years and the balance sheet relying heavily on external borrowing, the key question is whether the value on offer compensates for those funding and profitability risks.

Underpriced lease to own cash flows at Aaron's Company could be masking a far more complicated funding story, so before you decide it is just another cheap retailer, read the 3 key rewards and 1 important major warning sign

Big Yellow Group (LSE:BYG)

Overview: Big Yellow Group is a UK self storage company that owns and operates 111 largely freehold and long leasehold stores, offering flexible storage space for consumers and businesses, mainly across London, commuter towns, and major regional cities.

Operations: Big Yellow Group generates about £209.2m in revenue from the provision of self storage and related services, all in the United Kingdom.

Market Cap: £1.69b

For investors unsettled by the AI sell off and looking for something more grounded, Big Yellow Group offers a mix of income, asset backing, and exposure to a simple business model that most customers pay for monthly. The stock screens as undervalued against a discounted cash flow estimate, yet carries a 5.21% dividend yield that is not well supported by free cash flow, and earnings growth has recently fallen sharply, with margins compressing from very high levels. With all liabilities funded by external borrowing and return on equity running in the mid single digits, the key consideration is whether the resilience of self storage demand and an experienced board are sufficient to offset funding risk and softer profitability.

Big Yellow Group’s mix of high yield, property backing, and pressured margins hints at a story investors have not fully priced in yet. It is therefore worth reading the 2 key rewards and 2 important warning signs

International Paper (IP)

Overview: International Paper produces renewable fiber based packaging, turning wood fiber into containerboard and corrugated boxes that serve food and beverage, agriculture, industrial and consumer goods customers across North America, Latin America, Europe and North Africa.

Operations: International Paper generates about US$15.10b in revenue from Packaging Solutions North America and US$9.22b from Packaging Solutions EMEA, with a small intersegment elimination of US$184m and US$202m from other external sales.

Market Cap: US$19.53b

International Paper offers exposure to real assets, tangible cash flows and a business tied to everyday goods rather than AI-related themes. The company is leaning into long term shifts toward recyclable packaging and e commerce volumes, while investing billions into mills, automation and new capacity such as the Mississippi plant and the NORPAC acquisition to improve efficiency and expand reach. At the same time, it carries meaningful debt, a 5.06% dividend that is not well covered, and a history of losses and mill reliability issues that indicate the turnaround involves significant risk. For investors who can tolerate those execution and funding risks, the combination of value pricing and packaging growth catalysts may justify taking a closer look at International Paper.

International Paper’s push into recyclable packaging and e commerce volumes could be masking a deeper shift in its risk reward profile, so it is worth reading the 3 key rewards and 2 important warning signs (1 is major!)

The three stocks covered here are only a sample of what value filters are currently turning up. The full Value Stocks screener includes 23 more companies with similarly compelling value and quality stories. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength, and dividend profiles that matter most to you so you can focus on the value ideas that best fit your conviction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.