This Week's Value Watchlist: Pool Corp and Four Other Battered Stocks That Could Be Bargains

The stock market has created a peculiar opportunity in recent months. While many investors chase new highs, a growing list of companies are trading near their lowest points in years. Stocks like Whirlpool, Estee Lauder, Deckers Outdoor, Pool, and Helen of Troy have all experienced significant declines. But here’s the central question every value investor must wrestle with: are these genuine bargains, or are they value traps waiting to trap the unwary?

This week’s analysis examines five beaten-down stocks that deserve closer examination. Not every stock trading at depressed prices represents a buying opportunity. The key difference between a real deal and a dangerous trap lies in fundamentals—specifically, whether the company can still grow its earnings despite its market struggles.

The Essential Framework: Deals vs. Traps

A simple price decline isn’t enough to signal a buying opportunity. Value investors hunting for bargains must look deeper. A genuine deal combines two essential elements: the stock is trading cheaply, and the company still demonstrates solid operational fundamentals with expected earnings growth.

The trap occurs when investors confuse a low stock price with a low valuation. Some companies have plunged for good reason—their earnings are deteriorating, competitive pressures are mounting, or the business model itself is broken. Buying these stocks is like catching a falling knife; the lower it goes, the more dangerous it becomes.

The critical question value investors ask: Is this company positioned to grow earnings year-over-year, or is it in structural decline? If the fundamentals support earnings expansion, the beaten-down stock may truly be on sale. If earnings continue contracting, the stock’s decline might have further to run.

Five Stocks Under Scrutiny: Separating Value From Volatility

Whirlpool Corp.: A Turnaround Play Testing Investor Patience

Whirlpool has endured a punishing five-year stretch. Earnings contracted for three consecutive years, and the stock has sunk 56.8% from recent highs. Shares have hit multi-year lows that would make most investors nervous.

Yet recent signals suggest the worst may be behind this appliance maker. Despite missing on fourth-quarter 2025 results, analysts have raised their 2026 earnings estimates this week. The consensus now projects 14.1% earnings growth for the upcoming year. Whirlpool shares have bounced 10.7% over the past month, suggesting some institutional investors are betting on recovery.

The question: Has the market finally priced in the bad news, or does further weakness await?

Estee Lauder: The Beauty Giant’s Pandemic Hangover

Estee Lauder showcases how post-pandemic normalization can devastate previously hot stocks. The luxury beauty company soared during lockdowns but has since crashed to five-year lows, down 51.3% over the period.

The earnings picture, however, offers hope. After three years of decline including an anticipated 41.7% drop in 2025, analysts expect a dramatic 43.7% earnings rebound in the following period. The company reports earnings on February 5, 2026—this week—which could either validate or undermine these optimistic projections.

The complication: Even with the stock devastated, Estee Lauder still trades at a forward price-to-earnings ratio of 53. That’s nearly four times what value investors typically consider attractive (P/E below 15). A bargain it’s not—at least not yet.

Deckers Outdoor: The Footwear Story Still Being Written

Deckers Outdoor owns two of the hottest footwear brands globally: UGG and HOKA. The company recently reported impressive fiscal third-quarter 2026 results that challenge the bearish narrative. HOKA sales surged 18.5% and UGG grew 4.9%, while the company posted record quarterly revenue.

Yet shares dropped 46.5% over the past year on consumer concerns and tariff worries. This week, Deckers raised its full-year 2026 guidance, and the stock jumped in response. The valuation looks reasonable at a forward P/E of just 15.6—well within value territory.

The central tension: Is the earnings upside real and sustainable, or are rising tariffs about to undercut these rosy projections?

Pool Corp.: Pandemic Winner Facing Normalized Demand

Pool has become a cautionary tale of pandemic winners struggling with normalized economic conditions. The company rode a wave of pool purchases during lockdowns when travel shut down and staycations dominated. That era has passed.

Pool Corp. experienced declining earnings for three straight years but analysts project a 6.5% earnings recovery in 2026. The stock has declined 28.3% over five years and trades at a forward P/E of 22—expensive relative to value standards but cheaper than many growth stocks.

The critical factor: Will the projected earnings rebound materialize, or is the business facing permanently reduced demand?

Helen of Troy: Extreme Cheapness Hiding Extreme Problems

Helen of Troy presents the most extreme case. The diversified consumer products company operates well-known brands including OXO, Hydro Flask, Vicks, Hot Tools, Drybar, and Revlon. But the stock has plummeted 93.2% to five-year lows—an almost incomprehensible decline.

The reason becomes clear from the earnings picture. Helen of Troy has experienced three consecutive years of declining earnings, and analysts expect another 52.4% earnings decline in the year ahead. The forward P/E sits at an almost absurdly low 4.9.

This represents the ultimate value trap test: Is Helen of Troy cheap because it’s a bargain, or is the market correctly pricing in a company in structural crisis?

What Makes This Week’s Stock Assessment Important

The common thread connecting all five companies is that their market prices have deteriorated far faster than many investors expected. Yet the divergence between their valuations and earnings trajectories varies dramatically.

Some—like Deckers with its forward P/E of 15.6 and rising guidance—show characteristics of genuine opportunities. Others—like Helen of Troy facing another 52% earnings decline—suggest the market’s pessimism may be justified.

Value investors monitoring these situations this week should focus on one metric above all: the company’s projected earnings growth rate. A stock trading at five-year lows might be either the investment opportunity of the decade or a carefully laid trap. The difference lies in whether management can actually increase earnings, not whether the stock has fallen furthest.

For those seeking to build a value portfolio, the lesson is clear: low price alone creates opportunity, but only earnings growth separates real bargains from illusions.