Three Value Stocks to Avoid: Atkore, PROG, and Sallie Mae

Atkore, PROG Holdings, and Sallie Mae are three value stocks with poor fundamentals that investors should steer clear of. Atkore's core business is underperforming, and its free cash flow margin has dropped significantly over the past five years. PROG Holdings' sales have stagnated, and its earnings per share have fallen despite revenue growth. Sallie Mae's products and services face significant end-market challenges, with sales declining by 1.6% annually over the last five years. Instead, investors should consider alternative value stocks with stronger fundamentals.

Investors seeking value stocks should proceed with caution when considering Atkore (ATKR), PROG Holdings (PRG), and Sallie Mae (SLM). These companies, while offering seemingly low forward P/E ratios, present significant risks due to poor fundamentals.

Atkore, which designs and manufactures electrical safety products, has seen its core business underperform. Organic revenue has disappointed over the past two years, suggesting a need for acquisitions to stimulate growth. The company's free cash flow margin has dropped by 5.8 percentage points over the last five years, indicating increased capital intensity due to competition [1].

PROG Holdings, which provides alternative payment solutions, has experienced stagnant sales over the last two years. While revenue has grown, earnings per share have fallen by 2.2% annually, and tangible book value per share has tumbled by 13.2% annually over the same period [1].

Sallie Mae, a financial services company offering private education loans and savings products, faces significant end-market challenges. Sales have declined by 1.6% annually over the last five years, raising concerns about the company's ability to generate growth [1].

Instead of these stocks, investors should consider alternatives with stronger fundamentals. StockStory, a platform that helps investors find the best companies, recommends high-quality stocks that have generated market-beating returns. These stocks, such as Nvidia and Exlservice, have proven resilience and growth potential [1].

Investors should exercise due diligence and consider the risks associated with each stock before making investment decisions. By steering clear of Atkore, PROG Holdings, and Sallie Mae, investors can focus on opportunities with more promising fundamentals.

References:
[1] https://stockstory.org/us/stocks/nyse/atkr/news/buy-or-sell/3-value-stocks-we-steer-clear-of