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. That said, here are three value stocks climbing an uphill battle and some other investments you should look into instead.

Macy's (M)

Forward P/E Ratio: 10x

With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Do We Steer Clear of M?

1. Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment

At $19.30 per share, Macy's trades at 10x forward P/E. Check out our free in-depth research report to learn more about why M doesn’t pass our bar.

Utz (UTZ)

Forward P/E Ratio: 11.4x

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE: UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

Why Is UTZ Risky?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Revenue base of $1.44 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Utz is trading at $10.52 per share, or 11.4x forward P/E. If you’re considering UTZ for your portfolio, see our FREE research report to learn more.

Fulton Financial (FULT)

Forward P/B Ratio: 1x

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Why Does FULT Fall Short?

1. Estimated net interest income growth of 3.5% for the next 12 months implies demand will slow from its five-year trend
2. Net interest margin of 3.5% is well below other banks, signaling its loans aren’t very profitable
3. Anticipated 2.5 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue

Fulton Financial’s stock price of $17.29 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including FULT in your portfolio.

Stocks We Like More

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at 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

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