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.

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. Keeping that in mind, here are three value stocks climbing an uphill battle and some other investments you should look into instead.

Asure (ASUR)

Forward P/S Ratio: 1.8x

Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).

Why Does ASUR Worry Us?

1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 6.9% underwhelmed
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6.4 percentage points
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Asure is trading at $9.50 per share, or 1.8x forward price-to-sales. To fully understand why you should be careful with ASUR, check out our full research report (it’s free).

Owens Corning (OC)

Forward P/E Ratio: 8.6x

Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets.

Why Are We Wary of OC?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales decline of 3.5% for the next 12 months points to a tough demand environment ahead
3. Gross margin of 27.4% is below its competitors, leaving less money to invest in areas like marketing and R&D

Owens Corning’s stock price of $142 implies a valuation ratio of 8.6x forward price-to-earnings. If you’re considering OC for your portfolio, see our FREE research report to learn more.

Interpublic Group (IPG)

Forward P/E Ratio: 9.2x

With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE:IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.

Why Should You Dump IPG?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Projected sales decline of 5.7% over the next 12 months indicates demand will continue deteriorating
3. 10.9 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

At $25.10 per share, Interpublic Group trades at 9.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than IPG.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.