Buy Two Stocks

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Buy Two Stocks

Buy These Two Stocks While They Are Still Cheap

The S&P 500 is positive on a YTD basis with handsome gains. Still, there are many stocks that are trading at a discount. Two such stocks are Chipotle and Deckers Outdoor.

Analysts think both Chipotle Mexican Grill and Deckers Outdoor stocks are undervalued. With these stocks trading at yearly lows, you can consider buying them for above-average gains.

Deckers

Most of the apparel brands are struggling due to weak consumer spending. That's one reason why Deckers stock is trading near its yearly lows. The Deckers share price is also negative on a YTD basis.

The sales growth is also nowhere near what it used to be in the last 5 years. But things are changing, as the Q1 FY2027 data shows sales are up by 6% y/y. It appears that Deckers is taking the market share away from Nike.

Hoka is a footwear brand that is owned by Deckers. The sales of Deckers went up by 8% y/y in the last quarter. This is quite a healthy number when we look at the current operating environment.

Analysts think that the Deckers share price implies very minimal growth. But Deckers still has a lot of room to grow internationally. The company also has minimal debt.

Once consumer spending starts to recover, you can expect a healthy recovery in Deckers stock price.

Chipotle

Chipotle has been around for several decades. However, the Chipotle share price is also hovering near the 52-week lows.

The restaurant sales jumped up by 7% back in 2024. However, the comparable store sales went down by 1.7% in 2025. This was the catalyst which sent the Chipotle share price lower.

However, the comparable store sales recovered again in 2026. The sales went up by 2.2% y/y during Q2. What's interesting is that the recovery in sales has yet to show up in the stock price.

Let's not forget that Chipotle is a famous restaurant brand. It has millions of loyalty members. The current trading price suggests it is trading at a future P/E multiple of 27. That's quite low when we look at its historical numbers.

So, yet another stock you can consider buying for some capital gains is Chipotle. It already has millions of customers, and sales data show it is making a comeback.

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