
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 with little support and some other investments you should consider instead.
American Express Global Business Travel (GBTG)
Forward P/S Ratio: 1x
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
Why Are We Out on GBTG?
- Sales trends were unexciting over the last two years as its 5.3% annual growth was well below the typical software company
- Gross margin of 61% reflects its relatively high servicing costs
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
American Express Global Business Travel’s stock price of $6.95 implies a valuation ratio of 1x forward price-to-sales. Read our free research report to see why you should think twice about including GBTG in your portfolio.
Hillenbrand (HI)
Forward P/E Ratio: 12.4x
Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.
Why Do We Pass on HI?
- Annual sales declines of 2.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
- 16.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $31.92 per share, Hillenbrand trades at 12.4x forward P/E. Dive into our free research report to see why there are better opportunities than HI.
Autoliv (ALV)
Forward P/E Ratio: 11.9x
With products estimated to save over 30,000 lives annually in traffic accidents worldwide, Autoliv (NYSE: ALV) develops and manufactures passive safety systems for vehicles, including airbags, seatbelts, and steering wheels that protect occupants during crashes.
Why Are We Cautious About ALV?
- Sizable revenue base leads to growth challenges as its 1.6% annual revenue increases over the last two years fell short of other industrials companies
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
- High input costs result in an inferior gross margin of 17.9% that must be offset through higher volumes
Autoliv is trading at $121.25 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why ALV doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
