3 Value Stocks with Open Questions

The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.

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.

Conagra (CAG)

Forward P/E Ratio: 9.6x

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Why Should You Sell CAG?

1. Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Forecasted revenue decline of 2% for the upcoming 12 months implies demand will fall off a cliff
3. ROIC of 5.3% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Conagra’s stock price of $17.19 implies a valuation ratio of 9.6x forward P/E. Check out our free in-depth research report to learn more about why CAG doesn’t pass our bar.

Solventum (SOLV)

Forward P/E Ratio: 13.7x

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 Do We Steer Clear of SOLV?

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. Sales are projected to tank by 5.3% over the next 12 months as demand evaporates
3. Free cash flow margin shrank by 30.1 percentage points over the last four years, suggesting the company is consuming more capital to stay competitive

At $82.61 per share, Solventum trades at 13.7x forward P/E. If you’re considering SOLV for your portfolio, see our FREE research report to learn more.

ManpowerGroup (MAN)

Forward P/E Ratio: 8.2x

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

Why Should You Dump MAN?

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. Earnings per share fell by 18.4% annually over the last five years while its revenue was flat, showing each sale was less profitable
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

ManpowerGroup is trading at $27.50 per share, or 8.2x forward P/E. Read our free research report to see why you should think twice about including MAN in your portfolio.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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-small-cap company Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.