REDDIT
“Value Trap" Alert: Which stocks are being mistaken for "Value" but are actually just traps?
Guys, I’ve been doing some thinking. I often see people on this sub labeling certain stocks as "Value" simply because the P/E ratio has dropped or the price is well off its all-time highs. We all know that **a low price does not equal high value.**
Too often, behind a significant price drop, there isn't a "buying opportunity," but a structural break in the business model. I’m talking about classic *Value Traps*: stocks that look like a bargain but continue to erode per-share value.
Here are the names I consider the prime suspects (and which many mistakenly keep calling "Value”) : NIKE, LULU, BABA, PYPL
**I’m curious to hear your take: which stocks do you think are currently misidentified as "Value" plays, but are actually traps ?**