Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
This distinction between true value and value traps can challenge even the most skilled investors. Luckily for you, we started StockStory to help you uncover exceptional companies. Keeping that in mind, here are three value stocks with little support and some other investments you should consider instead.
Dole (DOLE)
Forward P/E Ratio: 10.2x
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Why Do We Pass on DOLE?
- Annual revenue declines of 2% over the last three years indicate problems with its market positioning
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
- Gross margin of 8.4% is an output of its commoditized products
Dole’s stock price of $14 implies a valuation ratio of 10.2x forward P/E. If you’re considering DOLE for your portfolio, see our FREE research report to learn more.
Steven Madden (SHOO)
Forward P/E Ratio: 12.6x
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Are We Hesitant About SHOO?
- Lackluster 5.7% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 9.2% annually
- Free cash flow margin is forecasted to shrink by 2.6 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
Steven Madden is trading at $25.50 per share, or 12.6x forward P/E. To fully understand why you should be careful with SHOO, check out our full research report (it’s free).
WesBanco (WSBC)
Forward P/B Ratio: 0.8x
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Do We Think Twice About WSBC?
- Annual net interest income growth of 2.4% over the last four years was below our standards for the bank sector
- Loan losses and capital returns have eroded its tangible book value this cycle as its tangible book value per share declined by 1.4% annually over the last five years
- High interest payments compared to its earnings raise concerns about its ability to service its debt consistently
At $30.24 per share, WesBanco trades at 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than WSBC.
Stocks We Like More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 Comfort Systems (+782% 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
