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3 Value Stocks That Concern Us

TSN Cover Image

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.

Tyson Foods (TSN)

Forward P/E Ratio: 14.5x

Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Should You Sell TSN?

  1. Annual sales growth of 1.1% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
  2. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 7.4%
  3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Tyson Foods’s stock price of $56.98 implies a valuation ratio of 14.5x forward P/E. Dive into our free research report to see why there are better opportunities than TSN.

Shyft (SHYF)

Forward P/E Ratio: 12.2x

Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ: SHYF) offers specialty vehicles and truck bodies for various industries.

Why Are We Out on SHYF?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 13.7% annually over the last two years
  2. 6.8 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. Diminishing returns on capital suggest its earlier profit pools are drying up

At $12.54 per share, Shyft trades at 12.2x forward P/E. Check out our free in-depth research report to learn more about why SHYF doesn’t pass our bar.

Great Lakes Dredge & Dock (GLDD)

Forward P/E Ratio: 14.3x

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Are We Wary of GLDD?

  1. 2.9% annual revenue growth over the last five years was slower than its industrials peers
  2. Sales are projected to tank by 1.3% over the next 12 months as demand evaporates
  3. Cash-burning history makes us doubt the long-term viability of its business model

Great Lakes Dredge & Dock is trading at $11.58 per share, or 14.3x forward P/E. To fully understand why you should be careful with GLDD, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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

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