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 with little support and some other investments you should consider instead.
Oxford Industries (OXM)
Forward P/E Ratio: 12.3x
The parent company of Tommy Bahama, Oxford Industries (NYSE: OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Why Do We Avoid OXM?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Oxford Industries’s stock price of $40.51 implies a valuation ratio of 12.3x forward P/E. Check out our free in-depth research report to learn more about why OXM doesn’t pass our bar.
Griffon (GFF)
Forward P/E Ratio: 12.6x
Initially in the defense industry, Griffon (NYSE: GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Why Is GFF Not Exciting?
- Sales tumbled by 4.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
At $76.05 per share, Griffon trades at 12.6x forward P/E. If you’re considering GFF for your portfolio, see our FREE research report to learn more.
Array (ARRY)
Forward P/E Ratio: 11.8x
Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Why Should You Dump ARRY?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Earnings per share have contracted by 15.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Array is trading at $9.11 per share, or 11.8x forward P/E. To fully understand why you should be careful with ARRY, check out our full research report (it’s free for active Edge members).
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 5 Growth Stocks for this month. 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 Tecnoglass (+1,754% 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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