3 Value Stocks That Concern Us

September 15, 2025 at 00:32 AM EDT

FLO Cover Image

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.

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. That said, here are three value stocks climbing an uphill battle and some other investments you should look into instead.

Flowers Foods (FLO)

Forward P/E Ratio: 12.6x

With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.

Why Are We Hesitant About FLO?

Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
Subpar operating margin of 5.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Earnings per share have dipped by 1.4% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Flowers Foods’s stock price of $13.96 implies a valuation ratio of 12.6x forward P/E. To fully understand why you should be careful with FLO, check out our full research report (it’s free).

Xponential Fitness (XPOF)

Forward P/E Ratio: 6x

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Why Do We Steer Clear of XPOF?

5.8% annual revenue growth over the last two years was slower than its consumer discretionary peers
Persistent operating margin losses suggest the business manages its expenses poorly
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $8.92 per share, Xponential Fitness trades at 6x forward P/E. If you’re considering XPOF for your portfolio, see our FREE research report to learn more.

Solventum (SOLV)

Forward P/E Ratio: 13x

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Why Does SOLV Worry Us?

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
Forecasted revenue decline of 2.3% for the upcoming 12 months implies demand will fall off a cliff
Free cash flow margin dropped by 15.7 percentage points over the last four years, implying the company became more capital intensive as competition picked up

Solventum is trading at $72 per share, or 13x forward P/E. Dive into our free research report to see why there are better opportunities than SOLV.

High-Quality Stocks for All Market Conditions

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3 Value Stocks That Concern Us

Flowers Foods (FLO)

Xponential Fitness (XPOF)

Solventum (SOLV)

High-Quality Stocks for All Market Conditions

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