|Bid||27.01 x 4000|
|Ask||26.95 x 800|
|Day's Range||26.92 - 27.34|
|52 Week Range||16.52 - 27.69|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||1,925.00|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.30|
You can buy Under Armour gear at a discounted price this weekend while also supporting the local community.
While Wall Street is glued to the headlines about the U.S.-China trade war and the Federal Reserve, there's one stock that's been quietly moving higher to new all-time highs: Lululemon Athletica (NASDAQ:LULU). You might be wondering why a yoga company has been such a strong performer -- up over 50% since the start of 2019, in fact. That's because it's so much more than "just a yoga company."Source: FlickrOver the past two decades, Lululemon has led the athleisure fashion movement. The company was founded in 1998 by Chip Wilson, who spent the prior 20 years working in the surf, ski and skatewear industries. Lululemon started as a design studio by day and yoga studio at night in Vancouver, Canada. And it became the company's first standalone store in 2000.Initially, LULU grew by word of mouth, pop-up shops in yoga studios and brand ambassadors. Now, the company has more than 400 stores across four continents. And for workout buffs who are too busy to drive to their nearest store, there are multiple Lululemon e-commerce sites and mobile apps.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven as it has grown its global footprint and customer base, Lululemon has kept true to its founding values. It differentiates itself by making some of the highest quality and most comfortable workout clothing that money can buy.Now, I'm not recommending LULU stock because it made yoga pants mainstream. Rather, the company is expanding into mass sports distribution and capturing market share from big-name athletic apparel companies like Nike (NYSE:NKE) and Under Armour (NYSE:UA).Strong Earnings Growth AheadAnd it's been paying off big time.For its latest quarter, the company posted double-digit earnings and sales growth, as well as topped analysts' earnings and sales estimates. The company reported 20.4% annual revenue growth and 34.5% annual earnings growth.Looking forward to the second quarter, company management is forecasting earnings per share of $0.88, a 24.9% year-over-year increase from $0.71, on $843.3 million in sales. This represents a 16.6% rise from the $723.5 million in sales last year. So, clearly, LULU stock is doing well.In fact, just Monday, the company announced that on Thursday it will be opening its biggest store ever -- a whopping 24,000 square foot space. For some perspective, this is about four NBA basketball courts put together. And not only will customers will be able to buy clothes, but they'll be able to take a break and grab a meal at "Fuel," a restaurant on the store's second level.In the new e-commerce world where Amazon (NASDAQ:AMZN) reigns supreme, it's important the companies with brick-and-mortar stores provide something a little "extra," in order to keep customers coming back. This restaurant is a good way for LULU to stand out and keep that traffic coming in.In the meantime, LULU stock hit a new all-time high of $191.44 on Monday. However, I don't see it slowing down anytime soon. So, I don't recommend selling it at new highs. In fact, it still sits below my buy limit on my Growth Investor Buy List.The truth of the matter is that the company continues to see good sales and earnings growth, as well as strong institutional buying pressure, so we know that the "smart money" is still interested, too.Now, I'm such a fan of LULU stock that it's my pick for InvestorPlace's 10 Best Stocks for 2019 contest. (You can read all the details here.) I also recommended it in my Growth Investor service just last year, and it's sitting on over a 50% return. But that's just the beginning. To get my latest thoughts on the company, as well as my other latest recommendations, you can sign up here.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post LULU Stock Stretches to New All-Time Highs appeared first on InvestorPlace.
Casey's General Stores, Michaels, lululemon athletica, Guess' and Under Armour highlighted as Zacks Bull and Bear of the Day
lululemon (LULU) is benefiting from product innovation, enhancement of omni-channel experience and sturdy international growth. It is also progressing well on the Power of Three strategic plan.
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains takes a look at three sportswear stocks to consider buying as the second quarter 2019 earnings season kicks off.
BALTIMORE , July 16, 2019 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) plans to release the results of its second quarter (ended June 30, 2019 ) on Tuesday, July 30, 2019 at 6:55 a.m. ET . Following ...
Softness in Ralph Lauren's (RL) North America segment and adverse currency rates are hurting growth. But, the Next Great Chapter plan and strength in international and digital businesses bode well.
Arguably the single biggest theme and driver of the record 2019 stock market rally has been the plunge in interest rates. In short, as interest rates rose in late 2018, stocks fell off a cliff, and as interest rates have plunged in 2019, stocks have come roaring back.Why have interest rates and stocks been inversely correlated? In depth, it's a complicated conversation. But the high level ideas are easy to digest.There are two things at play here. One, bonds and stocks are competing investment vehicles. Money all around the world has to constantly decide whether to be invested in stocks, or bonds. When interest rates drop, bond yields drop and the return on bonds becomes less attractive relative to stocks. Thus, money rushes into stocks. Further, because bond yields are lower, that gives wiggle room for stock yields to go lower, too, so the multiple on stocks can and should move higher in a low rate environment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTwo, the theoretical present value of a stock is the net present value of its future profits, discounted back by a certain discount rate. One of the principal components which influences that discount rate: the risk free investment rate (which is a byproduct of current interest rates). Thus, as interest rates drop, the risk free investment rate drops, the discount rate on future profits drops and the present value of equities rises.Consequently, it is reasonable to say that low rates today are inflating equity valuations everywhere.This is especially true for certain stocks which seem a too inflated by low rates. For these stocks, if/when rates rise, their present valuations could crumble, and the stocks could fall off a cliff. * 7 Dependable Dividend Stocks to Buy With that in mind, let's take a look at 7 stocks that seem overly inflated by low interest rates. Stocks Being Inflated By Low Rates: Proctor & Gamble (PG)Source: Mike Mozart via Flickr (Modified)YTD Gain: 24%Forward P/E Multiple: 24Long Term Projected EPS Growth Rate (sourced from YCharts, for all stocks): ~7%Consumer staples giant Proctor & Gamble (NYSE:PG) has rallied 24% year-to-date, generating 4 points of alpha on the S&P 500, mostly thanks to the plunge in interest rates. In short, PG is a defensive story with a big yield. Defensive stories tend to have low multiples, so when rates fall, these defensive stories can benefit from big multiple expansion. At the same time, big yield stocks become relatively more attractive in low rate environments, since healthy risk free yield is hard to find.But at current levels, PG stock has nearly the same forward earnings multiple as Facebook (NASDAQ:FB). Facebook is a 20%-plus revenue grower. Proctor & Gamble grew revenues by 1% last quarter (5% on an organic basis). Over the next several years, this company projects as a mid single digit profit grower. A 24 forward multiple is simply too steep for mid single digit profit growth, especially considering the entire consumer staples sector trades at less than 20-times forward earnings for a similar long term earnings growth rate.Net net, PG stock has been overly inflated by low rates, and if/when low rates do creep higher, PG stock could drop in a big way as the multiple compresses to more reasonable levels. Stocks Being Inflated By Low Rates: Match Group (MTCH)YTD Gain: 67%Forward P/E Multiple: 40Long Term Projected EPS Growth Rate: ~15%Shares of global internet dating behemoth Match (NASDAQ:MTCH) have rattled off a near 70% gain through the first six months of 2019, as low rates have supported multiple expansion on the stock while the company has continued to report strong subscriber growth numbers which underscore that online dating is a growing global phenomena. This is nothing new for MTCH stock. Over the past three years, the stock is up nearly 400%.The secular growth narrative here is healthy. Dating, like shopping and TV watching, is moving to the online channel. Match is the dominant player in this market, having bought up pretty much all the competition and controlling a suite of dating apps which together comprise the lion's share of the online dating market. This dynamic of leadership in a secular growth market implies that Match will continue to report robust subscriber, revenue, and profit growth for the foreseeable future.But robust here needs an asterisk. Subscriber, revenue, and profit growth growth were all in the low to mid teens range last quarter. Going forward, analysts project this as a mid teens profit grower. MTCH stock trades at 40-times forward earnings. That's a steep multiple for 15% profit growth. The info tech space broadly trades at half that multiple for roughly the same long term profit growth rate. * 5 EV Stocks to Buy for Big Gains Over the Next Decade Consequently, MTCH stock -- while supported by secular growth tailwinds -- seems to be overly inflated here by low rates. Stocks Being Inflated By Low Rates: Chipotle Mexican Grill (CMG)YTD Gain: 71%Forward P/E Multiple: 57Long Term Projected EPS Growth Rate: ~20%Year-to-date, Mexican fast casual eatery Chipotle Mexican Grill (NYSE:CMG) has been one of the S&P 500's top stocks, rising more than 70% through the first six months of 2019. The catalyst behind the rally has been acceleration of Chipotle's operational recovery. Expansion of the digital business, new menu additions and aggressive health-oriented marketing have driven Chipotle's recovery into the next-gear, with comps and margins flying higher. Investors keep buying into this recovery narrative, and Chipotle stock keeps moving higher.But the valuation on CMG stock now makes no sense, unless interest rates remain depressed forever. CMG stock trades at nearly 60-times forward earnings, roughly three times the projected long term EPS growth rate of 20%. Realistically, I actually think Chipotle can do better than 20% EPS growth, and think EPS can land around $40 by 2025 (nearly 25% annualized growth). But based on a restaurant average 27 forward multiple and 10% discount rate, $40 EPS by 2025 supports a 2019 price target for CMG stock of just $670.Chipotle stock trades hands today north of $700. Thus, this stock appears to be overly inflated by presently low interest rates. Stocks Being Inflated By Low Rates: Starbucks (SBUX)Source: Shutterstock YTD Gain: 38%Forward P/E Multiple: 32Long Term Projected EPS Growth Rate: ~15%Shares of coffee retail giant Starbucks (NASDAQ:SBUX) have rallied 38% in 2019, nearly double the return of the S&P 500, as investors have grown more optimistic regarding the company's long term growth trajectory in China and as operations domestically have shown signs of improving.But traffic trends in the U.S. are still negative, competition is still ramping, traffic trends everywhere else are slowing, overall comparable sales growth is slowing from its multi-year trend, margins aren't moving higher, and -- despite all that -- SBUX stock now trades at its biggest forward earnings multiple (32) since 2015, when the company's internal growth rates were much higher. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Indeed, 32-times forward earnings seems like a steep price to pay for low to mid single digit comparable sales growth, mid to high single digit revenue growth, flattish margins and mid teens profit growth. As such, it is reasonable to say that the current valuation underlying SBUX stock is sustainable if and only if interest rates remain low. As soon as they move higher, the multiple will compress and the stock will drop. Stocks Being Inflated By Low Rates: Under Armour (UAA)Source: Shutterstock YTD Gain: 49%Forward P/E Multiple: 77Long Term Projected EPS Growth Rate: ~30%Athletic apparel company Under Armour (NYSE:UAA) has been one of the market's hottest stocks in 2019, rising nearly 50% through the first six months of 2019 as athletic apparel demand trends have remained favorable, and Under Armour's growth and margin trends have improved against the backdrop of falling inventory (which is usually a solid leading indicator in the retail space).But UAA stock now trades at nearly 80-times forward earnings. Sales growth last quarter was 3%. The quarter before that it was 3%. Sure, margins are moving higher here, and top-line growth rates may improve as Under Armour pushes a more relevant product line-up over the next few quarters. Still, at best, this is a 20-30% profit grower over the next few years. Extrapolating that out, Under Armour will probably wind up with around $1.50 in EPS by fiscal 2025. Based on a long term average Nike-type forward multiple of 25 and a 10% discount rate, that equates to a 2019 price target for UAA stock of $23.Under Armour stock presently trades hands around $26. Thus, the current valuation seems overly inflated by low rates. Stocks Being Inflated By Low Rates: Costco (COST)Source: Shutterstock YTD Gain: 35%Forward P/E Multiple: 34Long Term Projected EPS Growth Rate: ~10%Shares of warehouse retailer Costco (NASDAQ:COST) have marched higher in 2019, to the tune of a 35% year-to-date gain, as the company has benefited from continued strong domestic consumer spending trends, especially in the discount segment, and as low rates have helped support multiple expansion in COST stock.At the present moment, both of those tailwinds will continue. Consumer economic fundamentals remain healthy, characterized by low unemployment, big wage gains, low consumer debt levels, and good credit. Meanwhile, rates project to remain low for the foreseeable future, as the Fed has embraced a rate cut mentality. The combination of those two dynamics should allow COST stock to keep moving higher. * 3 Breakout Stocks to Buy But it's also worth noting that the stock is trading at a decade high valuation despite the growth profile remaining largely unchanged. That dynamic is sustainable only if rates remain low. As soon as they start creeping higher, COST stock could feel some pressure. Stocks Being Inflated By Low Rates: Wingstop (WING)YTD Gain: 48%Forward P/E Multiple: 130Long Term Projected EPS Growth Rate: ~20%One of the hottest stocks in the market both this year and over the past several years has been chicken wing restaurant operator Wingstop (NYSE:WING). Year-to-date, WING stock is up nearly 50%. Over the past three years, the stock is up 270%. The big rally can be attributed to Wingstop's consistently positive comparable sales growth trajectory, which has coupled with huge unit growth rates and healthy margin expansion to produce second-to-none profit growth in the restaurant industry.But despite the company's strong growth track record, promising future growth potential, and tasty chicken wings, valuation is a serious issue for WING stock. The stock trades at 130-times forward earnings. That's is the most expensive multiple I have ever seen in the restaurant category. Further, Wingstop isn't growing that fast. Revenue rose 16% last quarter, and EBITDA rose 11%. Those are tiny growth rates next to a triple digit forward earnings multiple.As such, it is very reasonable to say that WING stock's present valuation is being overly inflated by low rates. Once rates start creeping up, WING stock will likely drop in a big way.As of this writing, Luke Lango was long FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 7 Stocks Being Inflated by Low Rates appeared first on InvestorPlace.
While many investors are focused on the negative impacts of tariffs and the U.S.-China trade war on corporate profits, they may be overlooking another sizable threat, which is rapidly rising labor costs. The median company in the S&P 500 Index (SPX) pays out 13% of its revenues in the form of employee compensation, and these costs grew by 3% in 2018, the fastest pace during the current economic expansion, which began in June 2009, Goldman Sachs reported this week. Goldman believes that stocks with lower than average labor costs as a percentage of sales are well-positioned to outperform in this environment.
Under Armour Inc NYSE:UAAView full report here! Summary * Bearish sentiment is moderate * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | NeutralShort interest is moderately high for UAA with between 10 and 15% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $4.17 billion over the last one-month into ETFs that hold UAA are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
On CNBC’s " Trading Nation" on Monday, Under Armour Inc (NASDAQ: UAA ), Starbucks Corporation (NASDAQ: SBUX ), Hershey Co (NYSE: HSY ) and Advanced Micro Devices, Inc. (NASDAQ: AMD ) were named ...
The consumer discretionary sector is rose Monday toward a record high, bucking the weakness in the broader stock market, as recent upbeat jobs data helped offset growing concerns of an economic slowdown. The SPDR Consumer Discretionary Select Sector ETF rose 0.1% toward and eighth-straight gain, which would be the longest win streak in eight months, and the third-straight record close. Meanwhile, the S&P 500 fell 0.5%. The consumer discretionary ETF's (XLY) gains come as second-quarter earnings reporting season is about to kick off, with the consumer discretionary sector set to show the first year-over-year decline decline in EPS since the fourth-quarter of 2013, according to FactSet. The XLY's biggest gainers Monday were shares of Under Armour Inc. rose 1.9%, Chipotle Mexican Grill Inc. climbed 1.7% and Advance Auto Parts Inc. advanced 1.7%. The biggest decliners was Royal Caribbean Cruises Ltd.'s stock , which fell 2.1%. The XLY has tacked on 3.3% over the past three months while the S&P 500 has gained 2.8%.
Under Armour (UAA) is gaining from the focus on brand development as well as the expansion of DTC and technology-based fitness businesses.
Learn about Under Armour and how it differentiates itself in the competitive athletic apparel industry in light of Porter's Five Forces model.
Two shareholders filed separate federal lawsuits last year claiming Under Armour CEO Kevin Plank used his position to benefit himself in pursuing the Port Covington project.
There's no need to sweat the next impromptu tweet or even those sanctioned trade talks playing with market bulls and bears these days. Instead, stand ready to play athletics retail stocks Nike (NYSE:NKE), Under Armour (NYSE:UAA) and Lululemon (NASDAQ:LULU), as the price charts in NKE, UAA and LULU stock signal that it's game time for bulls.The G-20 Summit has come and gone. And after a brief bit of cheer from Wall Street following this weekend's negotiated tariff truce between the U.S. and China, it's back to business as usual and more tempered worries by investors that a long road ahead remains intact. * 10 Stocks That Should Be Every Young Investor's First Choice Having said that, let's take a look at athletics retail stocks NKE, UAA and LULU and see what's happening on and off the price charts.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nike (NKE) Click to EnlargeNike has had a couple missteps of late. Last week, the company delivered underwhelming fourth-quarter results featuring its first profit miss since 2012. Earnings also declined for the first time in nearly two years.Now Nike has been forced to pull the launch of its Betsy Ross themed Air Max 1 Quick Strike shoe. The move by the athletics retail giant comes after activist and sidelined NFL quarterback Colin Kaepernick took issue with the design due to the sneaker's historical flag that's inexorably associated with slavery.On the price chart NKE stock is seeing some challenges as well. Following a very constructive-looking corrective test, which finished in early 2019, shares have struggled with their prior high. Two new all-time-highs formed this year have each met with selling pressure.I'm optimistic though. Nike stock will move higher. Given the size of Nike's 2016 - 2018 base, non-extended gains of around 30% since breaking out and its intact uptrend, it's nearly time to just do it and buy the stock.The Trade in NKE StockWhat I'd recommend for NKE stock is to enter shares if a fresh high this week above $86.20 is confirmed. This entry smartly waits to see if Monday's fireworks from investors are more than a one-day show, while also allowing shares to comfortably reclaim the former highs and move through resistance. Under Armour (UAA) Click to EnlargeThe second of our athletics retail giants is Under Armour. As with NKE stock, I'm a buyer of UAA, but for very different reasons. Under Armour is a turnaround story that continues to make the right moves. Off the price chart, this retail stock's successful rebuilding of its business was on full display with its early May earnings report.Technically, the big picture on the Under Armour price chart looks equally promising. After establishing fresh relative highs in mid-June, shares of UAA have pulled back for the last three weeks to test its prior trend highs from May 2018 and last December.The Trade in UAA StockThe recommended strategy in UAA stock is to wait for a confirmation of a weekly pattern low before purchasing this athletics retail giant. If shares remain in this vicinity, the trigger might look like a hammer or doji candlestick as the high of the weekly candle is broken. * 7 Restaurant Stocks to Put on Your Plate To play it safe, I'd advise a stop-loss below $24.35 and look to book profits down the road in-between $30 - $31.50. Lululemon (LULU) Click to EnlargeThe last of our athletics retail giants is really more of a force within the athleisure and yoga arena. As such, some investors might squabble about whether LULU stock should be grouped with NKE or UAA. I get it. More importantly, it would be hard to argue that shares of Lululemon aren't showing heat off and on the price chart.They definitely are!Regarding the former, LULU's mid-June earnings report topped the Street's profit and sales views, delivered solid year-over-year growth and also offered investors upwardly revised guidance. And on the price chart, LULU stock has also been very hot with Wall Street.The Trade in LULU StockWith LULU stock I'd suggest putting shares on the radar for purchase above $185. Currently, Lululemon is testing its late April flat or cup-shaped base high of $179.50 for support after a successful earnings-driven breakout.By forfeiting a couple percent, this entry lets last week's hammer be confirmed, while reducing the importance of the prior candle's bearish hangman pattern. I like the sound of that. And as a momentum name, this approach should have little trouble pleasing investors that show a bit of patience versus buying today's less fully developed bottom.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in in UAA stock and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Athletics Retail Stocks to Buy appeared first on InvestorPlace.
This year marks the second round of disclosures, including the first time some companies reported data because of the timing of their fiscal years.