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Welcome to Episode #428 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Not all stocks are trading near new highs. In fact, quite a few have sold off in the last year, with some trading near 5-year lows.
Value investors love to get stocks on sale. If a stock is trading at 5-year lows, however, that doesn’t always mean it’s a bargain. There are often reasons a stock continues to sell off for years.
Value investors have to ask: is this a genuine deal or a trap?
How to Tell the Difference Between a Deal and a Trap
A falling stock price is not the only criteria for finding a value stock. In fact, it may not be a criterion at all. But value investors like to hunt for bargains amidst those stocks that have plunged.
A “deal” is when a stock is cheap and it still has solid fundamentals. Those fundamentals mean that it is growing its earnings. Just because value investors want to get the company on sale, doesn’t mean that includes companies that are struggling.
Don’t settle. Look for companies that are expected to grow earnings year-over-year.
Avoid the traps.
5 Beaten Down Stocks: Deals or Traps?
Several of these companies reported earnings AFTER Tracey recorded the podcast, so this article updates the earnings outlook based on new information.
Whirlpool has struggled for the last 5 years. Earnings have fallen 3 years in a row. Shares have sunk 56.8% and hit 5-year lows. But in recent weeks, there has been some optimism.
Shares of Whirlpool are up 10.7% in the last month even though the company missed on fourth quarter 2025 earnings. Analysts have raised earnings estimates for 2026 this week. Whirlpool is expected to grow earnings by 14.1% in 2026.
Is the worst over for Whirlpool?
2. The Estee Lauder Companies Inc. (EL - Free Report)
Estee Lauder is a beauty giant. It was a hot performer during the pandemic but has since plunged to 5-year lows. Shares are down 51.3% over the last 5 years.
Estee Lauder will report earnings on Feb 5, 2026. But the current Zacks Consensus shows earnings growing 43.7% after three years of declines, including an expected decline of 41.7% in 2025.
A problem for value investors may be valuations. Even with the stock down big, it still trades with a forward price-to-earnings (P/E) ratio of 53. A P/E under 15 is usually considered a value.
Deckers Outdoor owns two of the hottest footwear brands: UGG and HOKA. It recently reported its fiscal third quarter 2026 results. HOKA sales were up 18.5% and UGG sales jumped 4.9%. Deckers saw record revenue in the quarter.
Shares of Deckers Outdoor fell 46.5% over the last year on worries about tariffs and the consumer. But Deckers raised its full year 2026 guidance this week, alleviating some of those concerns, and the stock jumped higher.
Deckers trades with a forward P/E of just 15.6. It’s cheap.
Pool Corp. was a Wall Street darling during the pandemic as travel was stymied and people bought pools for their homes and did staycations. But that’s over now.
Pool Corp. has seen declining earnings 3 years in a row. But analysts expect a rebound in 2026, with earnings growth of 6.5%. Pool Corp. hasn’t reported earnings yet, however.
Shares of Pool Corp. are down 28.3% in the last 5 years. It’s trading with a forward P/E of 22. That’s not cheap, but it’s not as expensive as Estee Lauder.
Helen of Troy is a global consumer products company with well known brands such as OXO, Hydro Flask, Vicks, Hot Tools, Drybar, and Revlon. Shares of Helen of Troy have plunged to 5-year lows, down 93.2%.
Earnings have fallen 3 straight years and analysts expect earnings to fall again in 2026, by 52.4%.
Helen of Troy is dirt cheap. It trades with a forward P/E of just 4.9.
Is Helen of Troy a deal or is it a trap?
What Else Should You Know About Buying Beaten Down Stocks?
Tune into this week’s podcast to find out.
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5 Beaten Down Stocks: Deals or Traps?
Key Takeaways
Welcome to Episode #428 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Not all stocks are trading near new highs. In fact, quite a few have sold off in the last year, with some trading near 5-year lows.
Value investors love to get stocks on sale. If a stock is trading at 5-year lows, however, that doesn’t always mean it’s a bargain. There are often reasons a stock continues to sell off for years.
Value investors have to ask: is this a genuine deal or a trap?
How to Tell the Difference Between a Deal and a Trap
A falling stock price is not the only criteria for finding a value stock. In fact, it may not be a criterion at all. But value investors like to hunt for bargains amidst those stocks that have plunged.
A “deal” is when a stock is cheap and it still has solid fundamentals. Those fundamentals mean that it is growing its earnings. Just because value investors want to get the company on sale, doesn’t mean that includes companies that are struggling.
Don’t settle. Look for companies that are expected to grow earnings year-over-year.
Avoid the traps.
5 Beaten Down Stocks: Deals or Traps?
Several of these companies reported earnings AFTER Tracey recorded the podcast, so this article updates the earnings outlook based on new information.
1. Whirlpool Corp. (WHR - Free Report)
Whirlpool has struggled for the last 5 years. Earnings have fallen 3 years in a row. Shares have sunk 56.8% and hit 5-year lows. But in recent weeks, there has been some optimism.
Shares of Whirlpool are up 10.7% in the last month even though the company missed on fourth quarter 2025 earnings. Analysts have raised earnings estimates for 2026 this week. Whirlpool is expected to grow earnings by 14.1% in 2026.
Is the worst over for Whirlpool?
2. The Estee Lauder Companies Inc. (EL - Free Report)
Estee Lauder is a beauty giant. It was a hot performer during the pandemic but has since plunged to 5-year lows. Shares are down 51.3% over the last 5 years.
Estee Lauder will report earnings on Feb 5, 2026. But the current Zacks Consensus shows earnings growing 43.7% after three years of declines, including an expected decline of 41.7% in 2025.
A problem for value investors may be valuations. Even with the stock down big, it still trades with a forward price-to-earnings (P/E) ratio of 53. A P/E under 15 is usually considered a value.
Is Estee Lauder a deal?
3. Deckers Outdoor Corp. (DECK - Free Report)
Deckers Outdoor owns two of the hottest footwear brands: UGG and HOKA. It recently reported its fiscal third quarter 2026 results. HOKA sales were up 18.5% and UGG sales jumped 4.9%. Deckers saw record revenue in the quarter.
Shares of Deckers Outdoor fell 46.5% over the last year on worries about tariffs and the consumer. But Deckers raised its full year 2026 guidance this week, alleviating some of those concerns, and the stock jumped higher.
Deckers trades with a forward P/E of just 15.6. It’s cheap.
Is Deckers a deal or a trap?
4. Pool Corp. (POOL - Free Report)
Pool Corp. was a Wall Street darling during the pandemic as travel was stymied and people bought pools for their homes and did staycations. But that’s over now.
Pool Corp. has seen declining earnings 3 years in a row. But analysts expect a rebound in 2026, with earnings growth of 6.5%. Pool Corp. hasn’t reported earnings yet, however.
Shares of Pool Corp. are down 28.3% in the last 5 years. It’s trading with a forward P/E of 22. That’s not cheap, but it’s not as expensive as Estee Lauder.
Is Pool Corp. a deal or a trap?
5. Helen of Troy Ltd. (HELE - Free Report)
Helen of Troy is a global consumer products company with well known brands such as OXO, Hydro Flask, Vicks, Hot Tools, Drybar, and Revlon. Shares of Helen of Troy have plunged to 5-year lows, down 93.2%.
Earnings have fallen 3 straight years and analysts expect earnings to fall again in 2026, by 52.4%.
Helen of Troy is dirt cheap. It trades with a forward P/E of just 4.9.
Is Helen of Troy a deal or is it a trap?
What Else Should You Know About Buying Beaten Down Stocks?
Tune into this week’s podcast to find out.