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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.

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.

LKQ (LKQ)

Forward P/E Ratio: 10.1x

A global distributor of vehicle parts and accessories, LKQ (NASDAQ:LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.

Why Should You Dump LKQ?

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. Estimated sales growth of 2% for the next 12 months implies demand will slow from its two-year trend

3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

LKQ’s stock price of $37.02 implies a valuation ratio of 10.1x forward price-to-earnings. To fully understand why you should be careful with LKQ, check out our full research report (it’s free).

Marriott Vacations (VAC)

Forward P/E Ratio: 7.4x

Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.

Why Do We Steer Clear of VAC?

1. Demand for its offerings was relatively low as its number of conducted tours has underwhelmed

2. Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities

3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Marriott Vacations is trading at $55.91 per share, or 7.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than VAC.

MasterCraft (MCFT)

Forward P/E Ratio: 14.1x

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

Why Do We Think Twice About MCFT?

1. Demand for its offerings was relatively low as its number of boats sold has underwhelmed

2. Projected sales growth of 6.2% for the next 12 months suggests sluggish demand

3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 26.6% annually, worse than its revenue