It’s been a turbulent start to 2025 for investors. The market has faced a wave of selling pressure driven by surging tariffs, escalating geopolitical tensions, and growing fears of a global economic slowdown. The S&P 500, tracked by the popular SPDR ETF (NYSEARCA: SPY), is now down 8% year-to-date and more than 12% off its 52-week high.
However, there has been a glimmer of relief. After former President Trump announced a 90-day tariff pause for countries that refrained from retaliating against the U.S., the market bounced sharply off its lows. Still, despite the recent rebound, SPY remains in a firm downtrend, and investor sentiment is far from bullish.
With fear and uncertainty dominating the landscape, it’s worth asking: Could the worst-performing S&P 500 stocks now present a deep value opportunity, or are they names to avoid amid ongoing headwinds?
Well, let’s examine the two worst-performing S&P 500 stocks this year and consider what they might offer investors at current levels.
The Worst Performer YTD: Deckers Outdoor Corp.
[content-module:CompanyOverview|NYSE:DECK]Deckers (NYSE: DECK), the parent company of popular footwear brands like UGG, HOKA, and Teva, was crushed in 2025. It is down approximately 47% year-to-date and over 50% off its 52-week high. A key reason for the sharp decline? Tariffs. The administration’s major tariff on Chinese goods and a reciprocal tariff affecting Vietnam-based production have hammered Deckers, which heavily depends on overseas manufacturing for its HOKA and UGG lines.
Interestingly, the stock beat earnings expectations back in January, posting solid Q3 results. But the market wasn’t convinced. Deckers was trading at elevated valuations, and the geopolitical overhang tied to its supply chain exposure proved too much for investors to ignore.
Still, not all hope is lost. Analysts remain cautiously optimistic. The stock holds a Moderate Buy consensus based on 20 analyst ratings, with a 75% upside forecast from current levels. Raymond James recently upgraded DECK to Strong Buy, highlighting a possible beat for Q4, in-line guidance, and continued long-term strength in the HOKA and UGG brands.
Technically, DECK is struggling below its 20-day simple moving average, which has acted as downtrend resistance. A sustained break above the $120 level could mark a short-term bottom and shift sentiment, especially if tariff policy improves or guidance stabilizes.
The Second-Worst Performer Charles River Laboratories
[content-module:CompanyOverview|NYSE:CRL]Charles River Laboratories (NYSE: CRL), a global leader in preclinical drug testing and safety research, has been hit hard, but not by tariffs. Instead, regulatory changes are worrying investors. Shares are down approximately 42% year-to-date and 58% from their 52-week high, trading at their lowest levels since 2020.
The selloff accelerated in April after the FDA announced plans to phase out traditional animal testing for certain drug approvals, favoring new technologies like AI models and organoid systems. That directly threatens CRL’s core business, especially its Discovery and Safety Assessment segment, which relies heavily on animal-based preclinical research.
Following the FDA’s announcement, analysts quickly adjusted. Barclays cut its target from $160 to $145, and Mizuho trimmed its price target to $155. The consensus rating has slipped to Reduce, reflecting the growing uncertainty around CRL’s long-term growth prospects. The stock is now trading far below its 200-day SMA and appears deeply oversold, but due to the potentially fundamental impact of this regulatory shift, it's also in uncharted territory.
Given the uncertainty surrounding the FDA’s regulatory shift, it may be best for investors to hold off on making any decisions until Charles River Laboratories reports its upcoming earnings on May 8. According to the consensus forecast, the company is expected to post an EPS of $2.06 for the quarter, down from $2.27 in the same period last year.
With the full impact of the FDA’s changes still unclear, this earnings call could provide critical guidance and clarity on how the new regulations may affect CRL’s core business moving forward.
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