3 Value Stocks We Keep Off Our Radar

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.

Pilgrim's Pride (PPC)

Forward P/E Ratio: 9x

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.

Why Should You Dump PPC?

1. Annual sales growth of 1.8% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
2. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
3. Gross margin of 12.5% is below its competitors, leaving less money to invest in areas like marketing and production facilities

Pilgrim's Pride is trading at $38.50 per share, or 9x forward P/E. To fully understand why you should be careful with PPC, check out our full research report (it’s free).

ADT (ADT)

Forward P/E Ratio: 8.9x

Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE:ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

Why Is ADT Risky?

1. Sluggish trends in its customers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.2 percentage points
3. Underwhelming 6.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $8.12 per share, ADT trades at 8.9x forward P/E. Dive into our free research report to see why there are better opportunities than ADT.

Genco (GNK)

Forward P/E Ratio: 12.6x

Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Why Do We Think GNK Will Underperform?

1. Number of owned vessels has disappointed over the past two years, indicating weak demand for its offerings
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 46.6% annually, worse than its revenue
3. Free cash flow margin dropped by 23.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Genco’s stock price of $19.63 implies a valuation ratio of 12.6x forward P/E. Read our free research report to see why you should think twice about including GNK in your portfolio.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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.