If you want a good, deep value stock to buy, you often need to take on some risk, or at least accept some short-term uncertainty. But that patience can pay off in the long run. There are many examples of quality stocks out there that people have simply given up on, but that are by no means doomed.
Three stocks that fall into that category today include Lululemon Athletica (LULU -3.91%), Novo Nordisk (NVO -1.43%), and United Parcel Service (UPS 0.65%). They aren't simply trading near their 52-week lows; they are also at levels they haven't been at in multiple years.
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Lululemon Athletica
Shares of apparel maker Lululemon have been crashing this year. The company has lost around half of its value since January as tariffs are weighing on its growth potential. The company relies heavily on Asia for its manufacturing, and China is also a key market for Lululemon. As a result of the U.S. imposing tariffs on many countries, and particularly targeting China, shares of Lululemon have been in a free fall.
When it last reported earnings in June, the company projected single-digit net revenue growth of at least 5% for the full year. But with an evolving and changing situation related to tariffs, that guidance comes with an asterisk. Not only could its earnings decline as a result of rising costs, but there could also be less demand for Lululemon's premium-priced apparel if macroeconomic conditions around the world deteriorate due to trade wars.
Lululemon is, however, still a popular brand with young people, and it holds a lot of value. The stock is now trading at levels it hasn't been at since 2020. It's at a price-to-earnings (P/E) multiple of 13, which would normally be a steal of a deal if not for the question marks looming around its business. If you're willing to take on some risk and hang on amid the current uncertainty, Lululemon could be a good buy today.
But the safer option may be to wait until it reports earnings in the coming weeks to get an update of its situation, and then reevaluate the stock.
Novo Nordisk
Shares of Ozempic maker Novo Nordisk are also down big this year, falling by more than 40% thus far in 2025. The company has replaced its CEO and also cut its guidance this year as it's facing rising competition in the GLP-1 drug market. Novo still projects sales growth between 8% and 14% this year, but that's down from a previous estimate of 13% to 21%.
While it's disappointing to see the pharma company cut its guidance, there's still tremendous growth potential for its GLP-1 drugs in the future, particularly as they accumulate more indications. Regulators in the U.S. have recently expanded Ozempic's use to also treat chronic kidney disease. And a recent study suggests it may also help reduce the risk of Alzheimer's.
Novo Nordisk is also taking legal action to take knockoff versions of its GLP-1 products off the market. Doing so could help drive people to buy its FDA-approved treatments instead, and thus bolster its growth rate in the process.
With the stock trading at just 13 times its trailing earnings -- levels it hasn't been at since 2022 -- Novo Nordisk is a terrific buy right now.
United Parcel Service
United Parcel Service, or UPS as it's usually called, is another stock that's been struggling mightily this year, down more than 30%. With global uncertainty due to tariffs, the current macroeconomic environment is far from an ideal one for the logistics giant to be operating in. Investors, anticipating a slowdown in global shipments, have been quick to dump UPS' stock.
The company's sales were flat last quarter, and the problem is that things may get worse in upcoming periods, as companies grapple with tariffs and how best to navigate around them. There is the potential for trade to slow significantly, which would be bad news for UPS's business. But the good news is that the company is still profitable and it has been slashing jobs in an effort to cut costs and become leaner and more efficient.
In the long run, this is still a great business to invest in as it benefits from economic growth all over the world. Even if you're worried about the short term, UPS can be a good investment to hang on to for the long haul. The stock trades at a P/E ratio of just 13, and it hasn't been this cheap since 2013.
