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Top 3 most undervalued stocks in the S&P 500 index

BY Marek Jendral
Top 3 undervalued stocks

The stocks of major American companies forming the S&P 500 index experienced a volatile period in 2025, with some recording the worst performance in months. According to the SlickCharts ranking, 3 specific companies suffered extraordinary losses, placing them among the most undervalued stocks of the year.

In the following sections, we will look at Deckers Brands, Lululemon Athletica, and The Trade Desk Inc., which lost more than half of their value, yet still maintain interesting investment potential.

3. Deckers Brands (-50.67%)

Deckers Brands, best known for brands such as UGG and HOKA, experienced a dramatic stock drop of 50.67% in 2025. The company came under pressure due to rising production costs and weaker consumer confidence in both the U.S. and Europe.

Deckers Brands shares face investor pressure due to concerns over slowing growth of its main brands, especially Hoka, after a period of strong performance. In addition, weakening consumer spending in the U.S. could negatively affect demand for the company’s products and reduce its revenues.

Deckers stocks
Deckers stocks. Source: tradingview.com

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2. Lululemon Athletica (-54.91%)

The well-known sportswear brand Lululemon Athletica faces its toughest year in the past decade. Its shares dropped by 54.91%, a result of weaker demand in North America and increased competition in Asia. The company is also struggling with rising logistics costs and inventory surplus.

Shares fell in September after management lowered its full-year outlook, citing weaker demand in the U.S. and significant pressure on profit margins caused by claims. This move raised investor concerns about the company’s ability to maintain growth in a challenging economic environment.

Lululemon Athletica stocks
Lululemon Athletica stocks. Source: tradingview.com

1. The Trade Desk Inc. (-55.33%)

The Trade Desk Inc., a leader in digital advertising, saw its shares fall by 55.33% in 2025. Investors reacted to a slowdown in advertising spending growth and increased pressure from competitors, especially tech giants.

The Trade Desk shares are falling due to a series of disappointing financial results, issues with the new AI platform Kokai, and growing competition from Google and Amazon. Weaker revenues, uncertainty regarding the transition from the Solimar system, and client pressure on large accounts have reduced investor confidence and caused a significant drop in stock price.

The Trade Desk
The Trade Desk. Source: tradingview.com

Where to start investing?

Investing in stocks is worth doing through the XTB platform, as it offers an intuitive interface, zero fees for stocks and ETFs, fast trade execution, and Slovak customer support. Thanks to educational tools and analytical insights, even beginners can invest safely, efficiently, and at low costs.

Marek Jendral

Written by

Marek Jendral