The sell-off in the stock market has many long-term investors focusing more on the best values. But smart investors understand that not all "value stocks" are worth buying. Some are trading cheaply for good reasons and are better avoided at the moment. It's important to base a company's long-term value on solid financials and a clear path to long-term growth.

Some may be tempted to chase household names that have fallen hard, but what's eventually going to move stocks higher is growth, and growth is ultimately built on a company's competitive advantage. With that said, here's why I would steer clear of Bed Bath & Beyond (NASDAQ: BBBY) and Hasbro (NASDAQ: HAS) and suggest you consider two better-value stocks instead.

Shares of Bed Bath & Beyond are down about 65% this year and are nearly at penny-stock status. The current quote of $4.59 might look like a value on the surface, but the company's performance suggests it operates with an outdated store model that e-commerce entrants and other world-class retailers can disrupt.

Continue reading

Source Fool.com