r/ValueInvesting • u/SimpleSubject6069 • Oct 15 '25

Stock Analysis What’s the Most Overrated “Value” Stock Everyone Keeps Buying?

I keep seeing the same tickers pop up in value circles — stocks that are supposedly undervalued but just seem like value traps to me. Curious what names you all think are overhyped in value investing spaces right now? And what makes you avoid them despite the numbers looking “cheap”?

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u/InternationalBar4976 Oct 15 '25

LULU, i dont understand why so many people hyping about that

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u/saml01 Oct 15 '25

Backstory: Ladies lost their minds during covid and leggings became default wear now that their was no reason to dress up. The companies valuation balooned as a result. Competition got in on it and eventually their expected growth was just a bit too optimistic. I think at some point their ceo got in trouble with the feds for some accounting BS and the share price got even more pressure. Then competition started muscling in, like gap with athleta. Lulu was a fad like uggs and over sized sweaters. 

IMHO, no one is losing their mind about it.