Netflix, Deckers (Hoka/Ugg), and Chipotle have seen their share prices collapse -- but not the underlying businesses.
Netflix is still posting double-digit revenue growth, with viewing hours up 2% year over year in the first half of 2026.
Deckers and Chipotle are growing sales, with opportunities to expand their operations long term.
The S&P 500 (SNPINDEX: ^GSPC) is up 13% year to date as of Oct. 5, but many top consumer stocks still trade at discounts.
Netflix (NASDAQ: NFLX), Deckers Outdoor (NYSE: DECK), and Chipotle Mexican Grill (NYSE: CMG) are three strong brands in their respective industries trading near 52-week lows.
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Here's why they are worth buying.
Image source: Getty Images.
Netflix has a massive membership base that continues to spend billions of hours watching content. Yet the stock is down 28% year to date. As of Oct. 5, it's trading just above its 52-week low of $65.08.
The sell-off isn't due to weaker revenue or profits, but rather a lower price-to-earnings (P/E) multiple. Wall Street is worried about softer member engagement and intensifying competition. The stock was trading at a P/E multiple of about 50x a year ago but now trades at a more reasonable 21 P/E.
The discount appears unwarranted, as Netflix continues to post solid results. Second-quarter 2026 revenue reached $12.6 billion, rising 13% year over year. The company continues to deliver stellar profitability, with an operating margin of 33% in the quarter. Those high margins ultimately fund more content, expanding Netflix's library and keeping members engaged.
In the first half of 2026, members spent 97 billion hours watching content, up 2% year over year. That's better than the 1.5% growth reported for the same period in 2025, even with major sporting events competing for viewers.
Altogether, those numbers create a compelling buying opportunity for long-term investors. The stock trades at a forward P/E of 19 on 2026 earnings estimates, which may undervalue the company's future growth.
Apparel brands have struggled amid weak consumer spending, but Deckers owns one of the industry's strongest emerging brands in Hoka. The stock is down 23% year to date and trades about 2% above its 52-week low of $77.20 -- a level that appears to undervalue the business.
Sales growth isn't matching the mid-teens pace Deckers delivered over the past five years. Still, Deckers posted solid results, with fiscal 2027 first-quarter sales of $1.02 billion, up nearly 6% year over year. It's taking share from industry leader Nike, whose sales declined over the past year.
Hoka sales rose about 8% year over year last quarter, with UGG up about 5%. Those are solid numbers in a challenging operating environment.
The stock's valuation implies very low growth expectations, with a forward P/E of just 10.6 as of Oct. 5. Deckers still has room to expand internationally, generates an above-average profit margin of about 18%, and carries little debt on its balance sheet. When consumer spending picks up down the road, investors might be glad they bought at this cheap valuation.
Chipotle has been a rewarding investment for shareholders for well more than a decade. But recent weakness in comparable-sales performance has the stock down 17% year to date, leaving it trading about 10% above its 52-week low of $28.04.
After the company's restaurant sales grew 7.4% in 2024, comp sales declined 1.7% in 2025, sending the stock lower. However, comps rebounded in 2026, reaching 2.2% year over year in the second quarter. The improving sales performance is not yet reflected in the stock price, despite management raising its full-year comp sales guidance to a low-single-digit increase.
The company has gained traction with its "Recipe for Growth" strategy, pairing operational improvements with menu innovation. It plans to open about 350 to 370 new restaurants and keep expanding internationally, including entries into Mexico, South Korea, and Singapore.
Chipotle remains a top restaurant brand, with 23 million active loyalty members. The stock is trading at a forward P/E of 27 -- the lowest it's traded in years -- setting up more attractive return potential.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Deckers Outdoor, Netflix, and Nike. The Motley Fool recommends the following options: short December 2026 $38 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.