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.

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. That said, here are three value stocks with little support and some other investments you should consider instead.

Sally Beauty (SBH)

Forward P/E Ratio: 7.1x

Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE: SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.

Why Are We Out on SBH?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Subscale operations are evident in its revenue base of $3.69 billion, meaning it has fewer distribution channels than its larger rivals
3. Earnings per share have contracted by 2.7% annually over the last six years, a headwind for returns as stock prices often echo long-term EPS performance

At $13.55 per share, Sally Beauty trades at 7.1x forward P/E. Check out our free in-depth research report to learn more about why SBH doesn’t pass our bar.

Ingram Micro (INGM)

Forward P/E Ratio: 6.2x

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Why Should You Dump INGM?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2% for the last five years
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 14.5% annually
3. Poor free cash flow margin of 0.4% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Ingram Micro is trading at $19.22 per share, or 6.2x forward P/E. Read our free research report to see why you should think twice about including INGM in your portfolio.

SS&C (SSNC)

Forward P/E Ratio: 14x

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

Why Are We Hesitant About SSNC?

1. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.1% annually
2. 2.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. ROIC of 6.4% reflects management’s challenges in identifying attractive investment opportunities

SS&C’s stock price of $86.83 implies a valuation ratio of 14x forward P/E. To fully understand why you should be careful with SSNC, check out our full research report (it’s free).

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 6 Stocks for this week. 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

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.