I must admit, $LULU is starting to look quite attractive as a valuation opportunity. We all know Lululemon as it’s a premium brand, globally sold, men’s and women’s clothing. Sure, maybe recently some stuff isn’t as ‘top notch’ quality, but historically, we can say that they produce GOOD clothing. Well — tariffs (the threat of at least) really beat up the stock price, bad. Here’s a glance at some of the fundamentals… 🔵 YTD: -41.06% (Ya ouch!) 🟠 FWD PE: 14.9x 🟡 5Y EPS CAGR: 24.32% - See the graph for a visual. Down 41% YTD isn’t great.. but they’re not alone. Other quality brands are in a similar situation, and yeah, it’s centered around the looming threat of tariffs. But, here’s the good news: if you haven’t caught on… Trump wants DEALS. These tariffs won’t be so bad after-all. Some say taco, but I stay out of it because I just wanna make money. At the end of the day, what do I do as an investor? Well, a few things haha. I can tell you, I always start by screening for new opportunities. This is how I noticed $LULU and $DECK recently; they were flagged by my search queries. On a 5yr chart, I’ll set up a couple filters: 1. FWD PE: under 24x 2. EPS: growing above 5% 3. Price Trend: Under the 150ma What I want to see is a stock that is approaching that 200ma, that’s well — undeserved! Key word.. un-derserved. Find a disconnect. I love companies that compound naturally, growth their fundamentals consistently YoY, QoQ. These are high quality companies — and if a high quality company, with a predictable nature to the business has a WEIRD event (undeserved), thus throwing the valuation out of whack, but the fundamentals intact…. Well hey, you may have a good opportunity! Is $LULU the type of company I normally target long-term? Nope. Is it approaching an appealing valuation right now? In my opinion, it’s close. PS. There’s a lot more to selecting a good *long-term* investment than what I’ve highlighted today.
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17 Comments
Brett
@birdmanbrett · 1yr
Just bought $ASPI and gonna be buying $OKTA this coming week
Bradley @bradleytalksmoney · 1yr
Yea this one is silly 🪿
Michael Halloran
@halloran · 1yr
Numbers look good, I’m just not sold on business model and customers for long term.
BD Investing
@bdinvesting · 1yr
Wealthmatica I’ve found u 👀🔥
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