3 Value Stocks That Fall Short

Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.

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

Skyworks Solutions (SWKS)

Forward P/E Ratio: 13.1x

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Why Should You Dump SWKS?

1. Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 18.7 percentage points

At $60.96 per share, Skyworks Solutions trades at 13.1x forward P/E. Check out our free in-depth research report to learn more about why SWKS doesn’t pass our bar.

Henry Schein (HSIC)

Forward P/E Ratio: 14.5x

With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ:HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.

Why Are We Wary of HSIC?

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. Free cash flow margin dropped by 2.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Henry Schein is trading at $77.02 per share, or 14.5x forward P/E. If you’re considering HSIC for your portfolio, see our FREE research report to learn more.

Voya Financial (VOYA)

Forward P/E Ratio: 7.3x

Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.

Why Does VOYA Fall Short?

1. 6.5% annual revenue growth over the last two years was slower than its financials peers
2. Performance over the past two years shows its incremental sales were less profitable, as its 5.4% annual earnings per share growth trailed its revenue gains
3. Annual tangible book value per share declines of 8.3% for the past five years show its capital management struggled during this cycle

Voya Financial’s stock price of $72.23 implies a valuation ratio of 7.3x forward P/E. Read our free research report to see why you should think twice about including VOYA in your portfolio.

High-Quality Stocks for All Market Conditions

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 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.