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 is one value stock trading at a big discount to its intrinsic value and two with little support.

Two Value Stocks to Sell:

Scholastic (SCHL)

Forward P/E Ratio: 10.8x

Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services.

Why Are We Cautious About SCHL?

1. Sales were flat over the last five years, indicating it's failed to expand its business

2. Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability

3. Underwhelming 4.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Scholastic’s stock price of $19.03 implies a valuation ratio of 10.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why SCHL doesn’t pass our bar .

Columbus McKinnon (CMCO)

Forward P/E Ratio: 5.5x

With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Why Do We Think CMCO Will Underperform?

1. Annual revenue growth of 2.4% over the last two years was below our standards for the industrials sector

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.8% annually

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12.8 percentage points

Columbus McKinnon is trading at $17.93 per share, or 5.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CMCO .

One Value Stock to Watch:

Molina Healthcare (MOH)

Forward P/E Ratio: 12.4x

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Does MOH Stand Out?

1. Impressive 19.3% annual revenue growth over the last five years indicates it’s winning market share this cycle

2. Economies of scale give it fixed cost leverage when sales grow as well as negotiating power over membership pricing and reimbursement rates

3. Earnings per share grew by 12.2% annually over the last five years, comfortably beating the peer group average