These S&P 500 Stocks Are Down More Than 80% From Their All-Time Highs. Could They Be Good Contrarian Buys?

Investing in stocks that are down big can be risky. But it can also yield significant gains later on. The danger, of course, is that these types of stocks may fall further in value if their underlying businesses haven't sufficiently improved.

The S&P 500 is an index that's full of top, leading companies. However, many have been struggling in recent years. Three stocks within the index that are down 80% or more from their all-time highs include Nike (NYSE:NKE), PayPal (NASDAQ:PYPL), and PG&E (NYSE:PCG). Are any of them worth buying and taking a contrarian position in right now?

Nike

Footwear and apparel giant Nike isn't looking so mighty these days. It is down about 81% from its all-time high. In 2026 alone, it lost 45% of its value.

It hired a new CEO two years ago, but the problems plaguing the company then still remain an issue today. The growth just isn't there anymore. It recently reported its first-quarter revenue for fiscal 2027 for the period ending Aug. 31, and sales were down 4%, to $11.2 billion. For the full year, it's anticipating a high-single-digit decline, as Nike isn't seeing a turnaround anytime soon.

I believe it comes down to value. Consumers don't see the value in Nike products as much as they did before. More concerning is that I don't think there's an easy way to fix that. Not when there's a flurry of competition out there, and people gravitate to the cheapest options. While there will still be the Nike loyalists, I'm not convinced its products have as wide an appeal as they once did.

This is a stock I'd avoid, because while it's certainly fallen significantly over the years, it can still go lower. I wouldn't take a chance on its turnaround strategy, which remains full of question marks.

PayPal

Down 82% from its all-time high, another stock that's down big within the S&P 500 is PayPal. The company made online money payments and transfers easy, but now there are many more ways to do so, and a ton of competition.

Unlike Nike, however, the business is still growing. In the June quarter, PayPal's transaction revenue rose by 5% year over year. It's been a tough few years for the company as tariffs and trade issues have undoubtedly impacted its business. But to its credit, it's still growing and generating solid profits.

There's nothing fundamentally bad about PayPal's business, and it's still a leader in the online payment processing market, commanding a market share of around 45%. This is a stock that I think may be worth buying on weakness today, as it has good fundamentals and is trading at just nine times its estimated future earnings, making it a dirt cheap buy.

PG&E

Also down around 82% from its high is PG&E, a California-based utility company. The stock hasn't been the same since it started experiencing a sell-off in 2017, as there were reports that its utility equipment and practices may have contributed to wildfires, and it has faced lawsuits relating to that.

It's been struggling ever since to get back to those levels. Although it has risen by 28% over five years, it's a stock investors have largely been cautious about. The hope is that in the future, there may be wildfire liability protection in the state for utility companies, but that hasn't happened thus far.

Investing in a stock based on hopes of government policy can be risky, since policies can change significantly from one administration to the next. While PG&E's value may seem low, with it trading at just seven times its expected future earnings, I wouldn't take the risk and uncertainty that comes with the utility stock.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike and PayPal. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.