Value investing has produced some of the world’s most famous investing billionaires, including Warren Buffett, David Einhorn, and Seth Klarman, who built their fortunes 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. Keeping that in mind, here are three value stocks with little support and some other investments you should consider instead.
AMC Networks (AMCX)
Forward P/E Ratio: 3.6x
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Is AMCX Risky?
- Annual sales declines of 3.9% for the past five years show its products and services struggled to connect with the market
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
AMC Networks’s stock price of $7.84 implies a valuation ratio of 3.6x forward P/E. To fully understand why you should be careful with AMCX, check out our full research report (it’s free).
Mister Car Wash (MCW)
Forward P/E Ratio: 12.7x
Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.
Why Are We Out on MCW?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Returns on capital are growing as management invests in more worthwhile ventures
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Mister Car Wash is trading at $5.88 per share, or 12.7x forward P/E. Check out our free in-depth research report to learn more about why MCW doesn’t pass our bar.
MillerKnoll (MLKN)
Forward P/E Ratio: 10.5x
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
Why Does MLKN Give Us Pause?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 8.4% annually
- Low free cash flow margin of 2.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $21.90 per share, MillerKnoll trades at 10.5x forward P/E. If you’re considering MLKN for your portfolio, see our FREE research report to learn more.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.