2024-05-07 15:17:09 ET
Summary
- Lululemon's stock has fallen 30% this year, presenting a buying opportunity for investors.
- The company's growth initiatives, including international expansion and doubling e-commerce and men's revenue, are core reasons to remain invested in this name.
- Lululemon's strong gross margin profile outshines Nike's by more than ten points. And despite superior earnings growth, Lululemon is now also trading at a cheaper valuation than the sportswear giant.
When it comes to my growth stock portfolio, I typically focus on tech stocks, and even within the tech sector I'm generally more partial to software companies with high gross margins and steady streams of recurring revenue. But this year, with so much of the market's rally being powered by tech and AI, I still want to maintain exposure to growth while not over-indexing too much on red-hot software names....
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Lululemon: A Very Attractive Dip To Buy This Year