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.

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.

ON24 (ONTF)

Forward P/S Ratio: 1.7x

Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE: ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.

Why Do We Avoid ONTF?

1. Offerings couldn’t generate interest over the last year as its billings have averaged 3.3% declines
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment

ON24’s stock price of $5.40 implies a valuation ratio of 1.7x forward price-to-sales. Read our free research report to see why you should think twice about including ONTF in your portfolio.

Amkor (AMKR)

Forward P/E Ratio: 12.6x

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.

Why Should You Sell AMKR?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5.1% annually over the last two years
2. Gross margin of 14.5% reflects its high production costs
3. Substandard operating margin profitability and its deterioration over the last five years limit its responsiveness to unforeseen market trends

At $21.44 per share, Amkor trades at 12.6x forward P/E. To fully understand why you should be careful with AMKR, check out our full research report (it’s free).

Wendy's (WEN)

Forward P/E Ratio: 11.1x

Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.

Why Are We Wary of WEN?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its six-year trend
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Wendy's is trading at $11.30 per share, or 11.1x forward P/E. If you’re considering WEN for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum 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