Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.

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 with little support and some other investments you should consider instead.

Central Garden & Pet (CENT)

Forward P/E Ratio: 11.8x

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ: CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Why Do We Avoid CENT?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Underwhelming 8.5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging

At $32.48 per share, Central Garden & Pet trades at 11.8x forward P/E. Check out our free in-depth research report to learn more about why CENT doesn’t pass our bar.

Spectrum Brands (SPB)

Forward P/E Ratio: 14.5x

A leader in multiple consumer product categories, Spectrum Brands (NYSE: SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Why Should You Dump SPB?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Spectrum Brands’s stock price of $63.21 implies a valuation ratio of 14.5x forward P/E. If you’re considering SPB for your portfolio, see our FREE research report to learn more.

Pfizer (PFE)

Forward P/E Ratio: 8.8x

With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE: PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.

Why Does PFE Fall Short?

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. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 26.6 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

Pfizer is trading at $25.31 per share, or 8.8x forward P/E. To fully understand why you should be careful with PFE, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.