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. That said, here are three value stocks with little support and some other investments you should consider instead.

Appian (APPN)

Forward P/S Ratio: 3.1x

Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.

Why Are We Cautious About APPN?

1. Annual revenue growth of 16% over the last three years was below our standards for the software sector
2. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
3. Projected 2.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

At $30.66 per share, Appian trades at 3.1x forward price-to-sales. Check out our free in-depth research report to learn more about why APPN doesn’t pass our bar.

Energizer (ENR)

Forward P/E Ratio: 7.8x

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.

Why Are We Hesitant About ENR?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.4%
3. 3.9 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

Energizer’s stock price of $27.54 implies a valuation ratio of 7.8x forward P/E. To fully understand why you should be careful with ENR, check out our full research report (it’s free).

Prospect Capital (PSEC)

Forward P/E Ratio: 6.2x

Operating as one of the largest publicly traded business development companies in the United States, Prospect Capital (NASDAQ: PSEC) provides debt and equity financing to middle-market companies across various industries.

Why Should You Dump PSEC?

1. Annual sales declines of 8.1% for the past two years show its products and services struggled to connect with the market during this cycle
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Tangible book value per share tumbled by 4.3% annually over the last five years, showing financials sector trends are working against its favor during this cycle

Prospect Capital is trading at $2.88 per share, or 6.2x forward P/E. Read our free research report to see why you should think twice about including PSEC in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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-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

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