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.
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. Keeping that in mind, here are three value stocks climbing an uphill battle and some other investments you should look into instead.
Asure (ASUR)
Forward P/S Ratio: 1.5x
Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ: ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).
Why Are We Cautious About ASUR?
- Annual revenue growth of 14.3% over the last three years was below our standards for the software sector
- Offerings struggled to generate meaningful interest as its average billings growth of 7.1% over the last year did not impress
- Efficiency has decreased over the last year as its operating margin fell by 3.2 percentage points
At $8.68 per share, Asure trades at 1.5x forward price-to-sales. To fully understand why you should be careful with ASUR, check out our full research report (it’s free).
CONMED (CNMD)
Forward P/E Ratio: 11.3x
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
Why Is CNMD Not Exciting?
- Modest revenue base of $1.33 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Low returns on capital reflect management’s struggle to allocate funds effectively
CONMED is trading at $51.06 per share, or 11.3x forward P/E. Read our free research report to see why you should think twice about including CNMD in your portfolio.
Atlantic Union Bankshares (AUB)
Forward P/B Ratio: 0.9x
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Do We Think Twice About AUB?
- Weak unit economics are reflected in its net interest margin of 3.4%, one of the worst among bank companies
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
- Anticipated tangible book value per share growth of 6.5% for the next year implies profitability will be modest
Atlantic Union Bankshares’s stock price of $31.69 implies a valuation ratio of 0.9x forward P/B. If you’re considering AUB for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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
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