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.

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.

BigCommerce (BIGC)

Forward P/S Ratio: 1.1x

Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ: BIGC) provides software for businesses to easily create online stores.

Why Do We Steer Clear of BIGC?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 3.9% average billings growth over the last year was weak
2. Estimated sales growth of 4% for the next 12 months implies demand will slow from its three-year trend
3. Suboptimal cost structure is highlighted by its history of operating margin losses

BigCommerce’s stock price of $4.99 implies a valuation ratio of 1.1x forward price-to-sales. Check out our free in-depth research report to learn more about why BIGC doesn’t pass our bar.

MGP Ingredients (MGPI)

Forward P/E Ratio: 10.7x

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

Why Should You Dump MGPI?

1. Products have few die-hard fans as sales have declined by 6% annually over the last three years
2. Forecasted revenue decline of 15.8% for the upcoming 12 months implies demand will fall even further
3. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs

MGP Ingredients is trading at $27.59 per share, or 10.7x forward P/E. If you’re considering MGPI for your portfolio, see our FREE research report to learn more.

Silgan Holdings (SLGN)

Forward P/E Ratio: 10.8x

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Why Are We Out on SLGN?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Gross margin of 16.9% reflects its high production costs
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $45.68 per share, Silgan Holdings trades at 10.8x forward P/E. Check out our free in-depth research report to learn more about why SLGN doesn’t pass our bar.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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.

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