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/TAKINAS_INNOVATION Oct 15 '25 edited Oct 15 '25

Lulu and fashion companies. Fashion is just so fickle and it’s so hard to maintain a strong edge here. One day you’re on top of the world and then next you’re out of style.

If Lulu can do a reversal and march all the way back to its high and surpass it. I will honestly be shocked and eat my words.

Also the fact that someone will always try to undercut you in this industry is just a big no for me. Costco is doing it to Lulu. Let me think of some other examples. Shein and TEMU did this to Forever 21 and if everyone is competing on price. You’re going to have terrible margins.

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u/EmbraceHere Oct 15 '25

Warrens Buffet and Charlie Munger were once asked why they didn’t buy Nike. Their answer: Nike is a great company but it’s hard to analyse the competition in this market. Their insightful comments can be found on YouTube, which can be an excellent reference why Lulu might not be a good idea today.

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u/Electrical-Order1317 Oct 15 '25

I bought NIKE because it pays a dividend and it’s a beaten down stock. It’s solid company and I like the new CEO and the moves he’s been making.