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 climbing an uphill battle and some other investments you should look into instead.

Boyd Gaming (BYD)

Forward P/E Ratio: 12.1x

Run by the Boyd family, Boyd Gaming (NYSE: BYD) is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.

Why Does BYD Fall Short?

1. Sales trends were unexciting over the last two years as its 4.1% annual growth was below the typical consumer discretionary company
2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
3. Underwhelming 13.8% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $78.11 per share, Boyd Gaming trades at 12.1x forward P/E. Dive into our free research report to see why there are better opportunities than BYD.

AerSale (ASLE)

Forward P/E Ratio: 12.5x

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.

Why Are We Out on ASLE?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last five years
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

AerSale’s stock price of $5.89 implies a valuation ratio of 12.5x forward P/E. To fully understand why you should be careful with ASLE, check out our full research report (it’s free).

Brookline Bancorp (BRKL)

Forward P/B Ratio: 0.5x

Founded in 1871 and operating through three subsidiary banks across three states, Brookline Bancorp (NASDAQ: BRKL) is a multi-bank holding company that provides commercial, business, and retail banking services to small and mid-sized businesses and individuals in New England and New York.

Why Does BRKL Worry Us?

1. Net interest income trends were unexciting over the last four years as its 5.7% annual growth was below the typical bank company
2. Net interest margin dropped by 47.7 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market
3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 20.9% annually

Brookline Bancorp is trading at $10.26 per share, or 0.5x forward P/B. Read our free research report to see why you should think twice about including BRKL in your portfolio.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 Tecnoglass (+1,754% 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