ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Value Stocks with Questionable Fundamentals

QRVO Cover Image

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.

Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. Keeping that in mind, here are three value stocks with little support and some other investments you should consider instead.

Qorvo (QRVO)

Forward P/E Ratio: 13.6x

Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.

Why Do We Avoid QRVO?

  1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
  2. Estimated sales growth of 3% for the next 12 months implies demand will slow from its two-year trend
  3. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 20.3 percentage points

Qorvo is trading at $81.00 per share, or 13.6x forward P/E. To fully understand why you should be careful with QRVO, check out our full research report (it’s free for active Edge members).

Worthington (WOR)

Forward P/E Ratio: 14x

Founded by a steel salesman, Worthington (NYSE: WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Why Do We Steer Clear of WOR?

  1. Sales tumbled by 14.9% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Worthington’s stock price of $51.18 implies a valuation ratio of 14x forward P/E. If you’re considering WOR for your portfolio, see our FREE research report to learn more.

AdaptHealth (AHCO)

Forward P/E Ratio: 11.7x

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.

Why Are We Wary of AHCO?

  1. 2.1% annual revenue growth over the last two years was slower than its healthcare peers
  2. Earnings per share fell by 1.3% annually over the last five years while its revenue grew, partly because it diluted shareholders
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

At $10.48 per share, AdaptHealth trades at 11.7x forward P/E. Read our free research report to see why you should think twice about including AHCO in your portfolio.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  239.12
+0.94 (0.39%)
AAPL  255.53
-2.68 (-1.04%)
AMD  231.83
+3.91 (1.72%)
BAC  52.97
+0.38 (0.72%)
GOOG  330.34
-2.82 (-0.85%)
META  620.25
-0.55 (-0.09%)
MSFT  459.86
+3.20 (0.70%)
NVDA  186.23
-0.82 (-0.44%)
ORCL  191.09
+1.24 (0.65%)
TSLA  437.50
-1.07 (-0.24%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.