The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.

Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. Keeping that in mind, here are three value stocks with little support and some other investments you should consider instead.

Delta (DAL)

Forward P/E Ratio: 7.7x

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Should You Dump DAL?

1. Demand for its offerings was relatively low as its number of revenue passenger miles has underwhelmed
2. Projected sales decline of 1.1% for the next 12 months points to a tough demand environment ahead
3. Negative returns on capital show management lost money while trying to expand the business

At $47.59 per share, Delta trades at 7.7x forward P/E. To fully understand why you should be careful with DAL, check out our full research report (it’s free).

Amdocs (DOX)

Forward P/E Ratio: 12.7x

Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ: DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.

Why Do We Pass on DOX?

1. New orders were hard to come by as its average backlog growth of 1.6% over the past two years underwhelmed
2. Projected sales decline of 3.5% for the next 12 months points to an even tougher demand environment ahead
3. Free cash flow margin shrank by 4.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Amdocs’s stock price of $91.92 implies a valuation ratio of 12.7x forward P/E. If you’re considering DOX for your portfolio, see our FREE research report to learn more.

Xerox (XRX)

Forward P/E Ratio: 5.5x

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Why Do We Steer Clear of XRX?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.7% annually over the last five years
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Xerox is trading at $5.49 per share, or 5.5x forward P/E. Check out our free in-depth research report to learn more about why XRX doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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 6 Stocks for this week. 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-micro-cap company Kadant (+351% 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