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 climbing an uphill battle and some other investments you should look into instead.

Middleby (MIDD)

Forward P/E Ratio: 15x

Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE: MIDD) is a food service and equipment manufacturer.

Why Do We Steer Clear of MIDD?

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. Anticipated sales growth of 1.8% for the next year implies demand will be shaky
3. Earnings per share lagged its peers over the last two years as they only grew by 2.7% annually

Middleby is trading at $149.46 per share, or 15x forward P/E. Read our free research report to see why you should think twice about including MIDD in your portfolio.

ICF International (ICFI)

Forward P/E Ratio: 12.4x

Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.

Why Are We Out on ICFI?

1. Average backlog growth of 1.6% over the past two years was mediocre and suggests fewer customers signed long-term contracts
2. Projected sales decline of 6% for the next 12 months points to a tough demand environment ahead
3. 5.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

ICF International’s stock price of $86.08 implies a valuation ratio of 12.4x forward P/E. To fully understand why you should be careful with ICFI, check out our full research report (it’s free).

AbbVie (ABBV)

Forward P/E Ratio: 15x

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Does ABBV Give Us Pause?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
3. Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 9.1 percentage points

At $191 per share, AbbVie trades at 15x forward P/E. Check out our free in-depth research report to learn more about why ABBV 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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