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.
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 three value stocks with little support and some other investments you should consider instead.
DoubleVerify (DV)
Forward P/S Ratio: 2.3x
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Are We Wary of DV?
- Estimated sales growth of 9.3% for the next 12 months implies demand will slow from its two-year trend
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Operating margin fell by 1.8 percentage points over the last year as it prioritized growth over profits
At $11.39 per share, DoubleVerify trades at 2.3x forward price-to-sales. Check out our free in-depth research report to learn more about why DV doesn’t pass our bar.
Columbus McKinnon (CMCO)
Forward P/E Ratio: 6.4x
With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Why Are We Out on CMCO?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 11.3% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.8 percentage points
Columbus McKinnon’s stock price of $17.37 implies a valuation ratio of 6.4x forward P/E. Read our free research report to see why you should think twice about including CMCO in your portfolio.
Dell (DELL)
Forward P/E Ratio: 11x
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Why Does DELL Worry Us?
- Annual sales growth of 3.7% over the last five years lagged behind its business services peers as its large revenue base made it difficult to generate incremental demand
- ARR growth averaged a weak 3.6%, suggesting that competition is pulling some attention away from its offerings
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.5 percentage points
Dell is trading at $123.75 per share, or 11x forward P/E. Dive into our free research report to see why there are better opportunities than DELL.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 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-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.
