Investors looking to buy stocks in 2026 should look beyond soaring artificial intelligence stocks at strong, underperforming S&P 500 companies with huge near-term and long-term upside.

AI stocks cannot climb forever without experiencing a pullback, even if the best bull case scenario plays out. Meanwhile, there are a handful of large-cap S&P 500 stocks that were crushed in 2025 that long-term investors and short-term traders might want to buy at extremely beaten-down levels right now.

The hard-hit S&P 500 stock we explore today—Deckers Brands and Align Technology—operate strong businesses that aren’t tied to AI spending.

Both Deckers Brands and Align Technology have robust balance sheets and solid earnings and revenue growth outlooks.

The stocks tanked under the weight of their own success after they failed to keep up with massive periods of outsized expansion.

DECK and ALGN stocks are attempting to find their footing at potentially critical technical levels.

Given this backdrop, investors might want to be greedy while others are fearful and buy these two hard-hit S&P 500 stocks that are trading 50% and 80% below their highs to start 2026. 

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Buy Market-Crushing DECK Stock Down Over 50% and Hold Forever

Deckers Brands (DECK Quick QuoteDECK - Free Report)  stock has skyrocketed ~1,200% over the past 10 years, outperforming the S&P 500’s 260%, its industry’s 45%, and Nike’s 2% decline. The footwear firm behind UGG, Teva, and, most importantly, running shoe powerhouse HOKA, has soared a mind-boggling 35,400% in the past 25 years, compared to Nike’s 775%, the industry’s 145%, and the S&P 500’s 470%. Yet, investors can buy DECK stock 53% below its January 2025 highs right now.

DECK stock first plummeted after its Q3 FY25 earnings release at the end of January 2025 on the back of weaker guidance. The stock had also grown overheated. The first hint of slowing EPS and revenue growth after its furious expansion triggered the selloff.

Tariffs, inflation, and slowing consumers played significant roles in DECK’s drop. But a meaningful portion of Deckers’ subdued outlook is priced into the stock.

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DECK stock is attempting to overtake its critical 200-week moving average (a favorite of Charlie Munger, Warren Buffett’s longtime right-hand man) right now after finding support at its 2023 breakout levels in early November. The Nike competitor is also on the verge of overtaking its 200-day moving average.

The stock could break out in 2026, offering investors ~115% upside from its current levels if DECK returns to its peaks. For example, if a stock that was a $100 a share and falls 50% to $50, it must double (increase 100%) to get back to $100. DECK tanked from roughly $224 to its current ~$104 price.

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Deckers’ tumble, coupled with its earnings growth outlook, has Deckers stock trading in line with its 20-year median at 15.4X forward 12-month earnings. DECK is also trading 15% below its industry, 50% under Nike ((NKE Quick QuoteNKE - Free Report) ), and 35% below the S&P 500 despite blowing them all away.

The running shoe firm’s stellar balance sheet ($1.4 billion in cash and equivalents and $3.8 billion in total assets against $1.3 billion in total liabilities and zero debt) will help it weather the current economic uncertainty. DECK’s strong financial position could also help it pursue its next game-changing acquisition after the company bought HOKA in 2012.  

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Deckers transformed its HOKA brand into a running and athletic footwear powerhouse, eating away market share from Nike and Adidas. Consumers gravitate to HOKA’s relatively unique offerings as part of an industry-wide shakeup that has Deckers and industry rival On Holdings (ONON Quick QuoteONON - Free Report)  gaining more traction while Nike fades from its once dominant position. The company’s direction-to-consumer expansion also helped improve margins, sales, and earnings. 

The footwear company grew its revenue by an average of 19% and its GAAP earnings per share (EPS) by 32% between its FY21 and FY25. Deckers is projected to grow its revenue by 8% in FY26 (period ending in March 2026) and 7% next year. It’s set to expand its bottom line by 1% in FY26 and 6% next year.

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DECK has beaten our bottom-line estimates by an average of 45% in the past four quarters as part of a nearly five-year stretch of earnings beats. Its upward earnings revisions earn the stock a Zacks Rank #2 (Buy). On top of that, its earnings outlook never fell off a cliff, and its FY27 estimates have trended significantly higher in the past six months. 

Buy Medical Tech Stock ALGN Down 80% for Huge Upside?

Invisalign maker and the original orthodontics disruptor, Align Technology, Inc. (ALGN Quick QuoteALGN - Free Report) , was an under-the-radar Covid superstar. Consumers flush with cash decided to spend some of it fixing their teeth. The Covid-era boom was impossible to keep up with, and that success helped crush ALGN stock since then.

The massive pull forward also wreaked havoc on Align’s business cycle for several years. Thankfully, ALGN is showing signs of a turnaround that might make it a great target for investors in 2026.

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ALGN stock skyrocketed ~2,350% in the past 20 years, blowing away the S&P 500’s 500% and Tech’s 915%. This long-term outperformance includes an ~80% drop from its 2021 peaks. The stock is currently trading around where it was during the initial market-wide Covid selloff in 2020 and a potentially critical 2017 range.

Algin stock is attempting to break above its short-term 200-day moving average again after it briefly climbed above that level in early December. After that, a move up toward its very long-term 200-month moving average could mark be the next line in the sand for the stock that’s trading at some of its most oversold RSI levels in the past 20 years.

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On the valuation front, Align trades at a 34% discount to its 15-year median, 43% below Tech, and at some of its lowest levels in the last 20 years at 18X forward 12-month earnings. The company also has a strong balance sheet, with $1 billion in cash and equivalents and $6.2 billion in total assets vs. $2.3 billion in liabilities and zero debt.

More importantly, Algin is flashing signs of a turnaround after its Clear Aligner volume increased 4.9% YoY in Q3. This expansion was driven by 8.3% YoY and 14.7% sequential growth for its teens and kids segment. ALGN is projected to grow its adjusted earnings by over 9% in 2025 and 7% in 2026 on 1% and 4%, respective revenue growth.

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Higher inflation and slowing economic growth made it harder for people to justify spending on cosmetic dental work. Thankfully, ALGN’s business cycle is starting to normalize. The chart below also shows that Align’s earnings are projected to overtake its post-Covid peaks by 2028.

Align’s advanced clear aligner system permanently altered the orthodontic industry. It works directly with dentists, doctors, and orthodontists who help customers through the entire process, utilizing ALGN’s advanced digital services and technologies to scan teeth and more.

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ALGN’s success inspired competitors, some of whom quickly went out of business. It also critically expanded its reach within the teenage demographic, successfully attracting people who might have used traditional metal braces.

It has also expanded into an even younger demo that might have never even considered traditional orthodontics via its Invisalign First unit. On top of that, Align is actively growing its international business.