Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness- inspired accessories and footwear. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; recommerce; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, the People's Republic of China, Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. The company was founded in 1998 and is based in Vancouver, Canada.

lululemon athletica inc.

NIKE Inc. NKE stock has shown a marked recovery in the past month, with shares rising as much as 19.3%. With this increase, the company’s shares have outpaced the broader Shoes and Retail Apparel industry and the Consumer Discretionary sector’s growth of 15.3% and 3.9%, respectively. Also, the NKE stock has outpaced the S&P 500’s growth of 4.8% in the same period.
This Beaverton, OR-based athletic shoes and apparel retailer’s share performance is notably stronger than its competitors lululemon athletica inc. LULU and adidas ADDYY, which have gained 1.8% and 3.9%, respectively, in the past month. NKE has also lagged Birkenstock Holding PLC’s BIRK decline of 4.7% in the same period.
NIKE’s 1-Month Price Performance
Image Source: Zacks Investment Research
At the current share price of $72.47, the NKE stock trades 38.6% above its 52-week low of $52.28. Meanwhile, the NKE stock trades 20% below its 52-week high of $90.62. NIKE trades above its 50 and 200-day moving averages, indicating a bullish sentiment.
NKE Stock Trades Above 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
What’s Behind NIKE Stock’s Momentum?
The NKE stock recently gained pace, thanks to the strategic reset under its “Win Now” initiative, which focuses on revitalizing the brand’s core strengths in sport, innovation and marketplace execution. Despite a challenging fourth-quarter fiscal 2025, management highlighted visible progress in reenergizing performance products, driving emotional storytelling around sports moments, and tightening operations around key franchises. These efforts have been restoring NIKE’s brand identity and improving sell-through rates, especially in the running and basketball segments.
A major part of this turnaround stems from NIKE’s aggressive push into sport-specific strategies. The company has reorganized into dedicated teams by sport, launched impactful campaigns around major events like the French Open and WNBA season, and introduced signature products such as A’ja Wilson’s A-ONE, which sold out in minutes. Wholesale partners are responding positively, and NIKE Direct is slowly regaining its premium positioning, particularly through sport-led product drops and experiences like the LA After Dark Run Series.
On the operational side, NIKE is managing down inventory, segmenting the marketplace more effectively, and expanding through partnerships. These moves, coupled with positive wholesale order books and innovation in the pipeline, signal a path toward sustainable recovery and reignited investor confidence.
Do NKE’s Estimate Revisions Reflect This Optimism?
The Zacks Consensus Estimate for NIKE’s fiscal 2026 and 2027 earnings per share (EPS) has declined 11.6% and 3%, respectively, in the past 30 days. The downward estimate revision trend is an indication of deeper trouble for the company despite positive order backlog and progress on growth strategies.
For fiscal 2026, the Zacks Consensus Estimate for NKE’s revenues and EPS implies 1.6% and 22.7% year-over-year declines, respectively. The consensus mark for fiscal 2027 revenues and EPS indicates 6.1% and 55% year-over-year growth, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Image Source: Zacks Investment Research
What is Driving Down NIKE’s Estimates?
The downward estimate revisions for NKE reflect more than just caution. The lowered estimates indicate persistent structural challenges that continue to weigh on near-term performance despite signs of operational progress.
While the company is gaining traction with its "Win Now" strategy and seeing green shoots in wholesale demand and performance product sell-through, fourth-quarter fiscal 2025 results painted a sobering picture. Revenues declined 12%, NIKE Digital was down 26%, and the gross margin fell 440 basis points (bps) due to higher discounts, channel mix shifts, and supply-chain deleverage.
A significant contributor to lowered expectations is the steep drop in NIKE’s legacy franchises, Air Force 1, Dunk and AJ1, which collectively created nearly a $1-billion revenue headwind in the fiscal fourth quarter. These declines are expected to persist through the first half of fiscal 2026. Compounding matters, NIKE faces new tariff-related cost pressures, with a projected $1-billion incremental impact and a 75-bps drag on the gross margin for fiscal 2026.
For the first quarter of fiscal 2026, NIKE expects revenues to decline in the mid-single digits and the gross margin to contract by 350-425 bps, indicating both tariff impacts (approximately 100 bps) and continued channel adjustments. SG&A is expected to grow, seeing a low-single-digit rate. These projections highlight that while long-term fundamentals may be stabilizing, near-term turbulence remains a reality.
Is NKE’s Premium Valuation Justified?
While NIKE remains fundamentally strong, backed by its decisive actions to reposition itself for sustainable and profitable long-term growth, its current forward 12-month price-to-earnings (P/E) multiple of 40.36X raises concerns about whether the stock's valuation is justified. This multiple is higher than the Zacks Shoes and Retail Apparel industry average of 29.34X and the S&P 500’s average of 22.71X, making the stock appear relatively expensive.
At 40.36X P/E, the Swoosh brand owner is trading at a much higher valuation than its competitors. Its competitors, such as lululemon, adidas and Birkenstock, are trading at more reasonable multiples. lululemon, adidas and Birkenstock have forward 12-month P/E ratios of 15.27X, 21.85X and 22.55X — all significantly lower than NIKE. At such levels, NKE’s valuation seems out of step with its growth trajectory, especially given the recent decline in its stock price.
The stock's elevated valuation reflects high investor expectations for growth. However, compared with the above-mentioned competitors, NIKE looks increasingly vulnerable in an environment wherein market participants are growing cautious about overpriced Consumer Discretionary stocks. NKE’s ability to meet or exceed these lofty expectations is crucial in justifying its premium pricing.
Image Source: Zacks Investment Research
Is NIKE a Wise Investment Now?
NKE remains a fundamentally solid player in the consumer discretionary space, with a world-class brand, deep athletic partnerships, and a clear strategic roadmap in place. Its recent stock rally reflects growing investor optimism around the company’s reset initiatives, including a renewed focus on sport-led innovation, tighter marketplace execution and stronger wholesale relationships. These efforts have helped reenergize product momentum and restore confidence in Nike’s long-term positioning.
However, despite this positive narrative, NIKE’s near-term outlook remains clouded by multiple headwinds. The company continues to work through legacy inventory challenges, digital channel softness and new tariff-related cost pressures, factors that contributed to a cautious first-quarter fiscal 2026 guidance and downward earnings revisions. While the company is taking deliberate steps to address these issues, the recovery is expected to be gradual and uneven.
Given this backdrop, NIKE’s premium valuation appears stretched, especially relative to its industry peers. Until the company delivers consistent top-line growth and margin stabilization, the stock may struggle to attract broader investor interest. For now, the Zacks Rank #4 (Sell) stock reflects a prudent stance, as the market awaits clearer signs of sustainable recovery to justify its elevated pricing.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NKE Rallies 19% in a Month: Time to Buy the Hype or Wait for Proof?

Tractor Supply Company TSCO is likely to register an increase in the top line when it reports second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.40 billion, indicating a 3.6% jump from the year-ago figure.
The bottom line of the leading rural lifestyle retailer in the United States is expected to have risen year over year. The Zacks Consensus Estimate for earnings per share has been unchanged at 80 cents in the past 30 days, indicating a 1.3% rise from the year-ago period’s figure. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Tractor Supply has a negative trailing four-quarter earnings surprise of 2.5%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 8.1%.
Key Factors Likely to Impact TSCO’s Q2 Results
Tractor Supply’s quarterly performance is likely to have benefited from sturdy demand and strong market share gains. The company has been gaining from demand for its core merchandise, including consumable, usable and edible products. TSCO’s emphasis on tailoring its product offerings to suit the daily needs of rural customers has been a key driver of its success. Such factors, coupled with the execution of its everyday low-price strategy, are expected to have bolstered its performance in the quarter under review.
TSCO’s ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping, appears encouraging. The company has been benefiting from its Life Out Here Strategy and the Neighbor’s Club membership program, which are likely to have driven its sales. It continues to expand its competitive moat by gaining market share across its key product categories and maintaining healthy customer engagement metrics.
In its first-quarterearnings call management had expected net sales growth of about 3-4%, comparable store sales to range from flat to up 1% and earnings per share between $0.79 and $0.81 for the second quarter of 2025.
However, higher depreciation and amortization costs, expenses from opening a distribution center and cost inflation are likely to have been concerns. Growth investments and deleveraged fixed costs are also expected to have driven SG&A expenses. Our model indicates a 5.1% year-over-year increase in SG&A expenses for the second quarter, with the SG&A expense rate rising 30 basis points to 25.3%. Depreciation and amortization expenses are expected to increase 21.2% year over year.
What the Zacks Model Unveils for TSCO?
Our proven model does not conclusively predict an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Tractor Supply has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Tractor Supply Company Price and EPS Surprise
Valuation & Price Performance of TSCO Stock
From a valuation perspective, Tractor Supply stock trades at a premium relative to the Retail - Miscellaneous industry. The company has a forward 12-month price-to-earnings ratio of 25.34X, above the industry’s average of 17.96X. However, the stock trades below the historical benchmarks, with a five-year high of 27.91X.
TSCO shares have gained 11.7% in the past three months compared with the industry's 23.6% growth.
Stocks Poised to Beat Earnings Estimates
Here are a few companies that have the right combination of elements to post an earnings beat this time around:
Kohl’s Corporation KSS currently has an Earnings ESP of +1.02% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $3.5 billion, which indicates a decline of 6.7% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kohl’s quarterly earnings per share of 33 cents implies a 44.1% decrease from the year-ago quarter. The consensus mark has remained stable in the past 30 days. KSS has a trailing four-quarter earnings surprise of 18.8%, on average.
Chewy CHWY has an Earnings ESP of +0.09% and currently has a Zacks Rank of 3. CHWY is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.1 billion, indicating a 7.8% increase from the figure reported in the year-ago quarter.
The consensus estimate for CHWY’s fiscal second-quarter earnings is pegged at 33 cents a share, up 37.5% from the year-ago quarter. The consensus mark has been unchanged in the past 30 days. CHWY has delivered an earnings beat of 8.1%, on average, in the trailing four quarters.
lululemon athletica LULU currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.5 billion, indicating 7.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s second-quarter earnings is pegged at $2.87 a share, implying an 8.9% decrease from the year-earlier quarter. The consensus mark has dipped 1.4% in the past 30 days.
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Tractor Supply Gears Up for Q2 Earnings: What Awaits the Stock?

As the U.S. athleisure market shows signs of maturity, lululemon athletica inc. LULU is betting big on category expansion to reinvigorate growth. Despite reporting just 1% comparable store sales (comps) growth and 2% U.S. revenue growth in first-quarter fiscal 2025, the brand continues to gain market share in premium activewear, buoyed by strong guest response to newness across both performance and lifestyle offerings.
Innovations like the No Line Align and new lines such as Daydrift and BeCalm are helping broaden its appeal beyond core staples, as the company emphasizes product newness and technical solutions across its five key activities — yoga, run, train, golf and tennis.
lululemon’s strategic evolution includes a focus on franchise development, evident in the success of limited-distribution launches now being scaled. The brand is also optimizing its merchandise mix by shifting away from seasonal colors to silhouettes that offer differentiated value. While traffic trends remain soft, particularly in U.S. stores, the company is chasing demand where it sees momentum, evidenced by rapid sellouts and strong online and in-store response to innovation-driven offerings.
Looking ahead, lululemon is not only relying on product variety but also strengthening its global footprint. Growth in China (up 22%) and the rest of the world (up 17%) reflects ample whitespace internationally. As consumer behavior in North America grows more selective, lululemon’s ability to innovate in underpenetrated categories and expand internationally may prove critical to escaping domestic saturation and sustaining long-term growth. The brand remains agile, adjusting inventory, pricing and assortment to keep pace with a shifting market landscape.
Are LULU’s Rivals Feeling the Heat in a Mature Athleisure Market?
As lululemon navigates slowing U.S. sales in a saturated athleisure market, investors are increasingly asking whether giants like NIKE Inc. NKE and Under Armour UAA are feeling similar pressure from shifting consumer demand and heightened competition.
NIKE’s athleisure business is feeling the strain of a maturing market, as the fourth-quarter fiscal 2025 results showed a sharp 12% revenue decline and a 26% drop in NIKE Digital, which houses much of its lifestyle and athleisure assortment. While NIKE is repositioning toward core sports and performance, its sportswear segment, where the overlap with lululemon is most apparent, has also declined. The company is now leaning into sport-led assortments to rebalance its portfolio and drive growth.
Under Armour is facing headwinds from a saturated athleisure market, particularly in North America, where fourth-quarter fiscal 2025 sales declined 10% and lifestyle categories underperformed. Management highlighted challenges in attracting style-focused consumers, a segment where lululemon excels. While UAA’s core remains performance-driven, its athleisure offerings in training and activewear directly overlap with lululemon. The brand is now focused on improving design relevance and tightening distribution to stay competitive in a crowded landscape.
The Zacks Rundown for LULU
lululemon’s shares have lost 40.9% year to date compared with the industry’s decline of 26.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 15.04X, significantly higher than the industry’s 11.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 1%, whereas the consensus mark for fiscal 2026 suggests growth of 8.3%. Earnings estimates for fiscal 2025 and 2026 have been southbound in the past 30 days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Category Expansion Help lululemon Escape Athleisure Saturation?

In early trading on Wednesday, shares of Arm Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.1%. Year to date, Arm Holdings registers a 23.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is ASML Holding, trading down 10.2%. ASML Holding is showing a gain of 6.6% looking at the year to date performance.
Two other components making moves today are Marvell Technology, trading down 4.8%, and lululemon athletica, trading up 1.6% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nasdaq 100 Movers: ASML, ARM

The following are the top rated Consumer Discretionary stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
LULULEMON ATHLETICA INC (LULU) is a large-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Joel Greenblatt is 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LULULEMON ATHLETICA INC
YETI HOLDINGS INC (YETI) is a mid-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Joel Greenblatt is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: YETI Holdings, Inc. is a designer, retailer, and distributor of outdoor products. The Company's product portfolio consists of three categories: Coolers & Equipment; Drinkware, and Other. Its Coolers & Equipment family is comprised of hard coolers, soft coolers, cargo, bags, outdoor living, and associated accessories. Its hard cooler category includes YETI Tundra, YETI Roadie, YETI V Series hard coolers, YETI TANK ice, and YETI Silo 6G water cooler. The Hopper soft cooler product line includes Hopper M15 Soft Cooler, Hopper M12 Soft Backpack Cooler, Hopper M30 Soft Cooler, Hopper Flip Soft Cooler, and Daytrip Lunch Bag, among others. Its Drinkware product line consists of Rambler Colsters, Rambler Lowball, Rambler Wine Tumblers, Rambler Stackable Pints, Rambler Mugs, Rambler Tumblers, Rambler Straw Mugs and Cups, Rambler Bottles, Rambler Jugs, and Yonder Water Bottles. The Other category offers an array of apparel and gear, such as hats, shirts, bottle openers and ice substitutes.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of YETI HOLDINGS INC
BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Best Buy Co., Inc. is engaged in personalizing and humanizing technology solutions. The Company has two segments: Domestic and International. The Domestic segment comprises its operations in all states, districts and territories of the United States and its Best Buy Health business and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Geek Squad, Imagine That, Insignia, Lively, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, lively.com, techliquidators.com and yardbird.com. The International segment comprises all its operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca. The Companys product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of BEST BUY CO INC
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Joel Greenblatt - 7/13/2025

Key Points
The S&P 500 index rebounded in May and continued its winning streak through June.
Not all S&P 500 stocks, however, made investors money.
The top two worst-performing stocks in the index hit their 52-week lows in June.
The S&P 500 (SNPINDEX: ^GSPC) index rose 5% in June, but there were plenty of laggards among the index's 500 stocks. The two worst-performing stocks in the S&P 500 fell by double-digit percentages. Notably, both were consumer stocks.
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Lululemon Athletica
Lululemon Athletica (NASDAQ: LULU) stock plummeted over 20% on a single trading day in June, marking one of its biggest intraday falls in history, after reporting poor numbers. It ended the month down 25%.
Lululemon's same-store sales grew by only 1% year over year, while its operating margin fell by 110 basis points to 18.5% in the first quarter. With tariff-driven costs eating into its profits, Lululemon slashed its earnings outlook for the full year by almost 25% to $14.68 per share at the midpoint.
However, Lululemon reaffirmed its sales growth guidance of 7% to 8% and is raising prices and diversifying sourcing channels to mitigate the impact of tariffs. Lululemon doesn't manufacture but outsources production to countries like Vietnam, Cambodia, and Sri Lanka. Lululemon, however, still gets almost 75% revenue from the Americas.
After June's fall, Lululemon stock is trading at a price-to-earnings (P/E) of 16, less than half its five-year average P/E.
J.M. Smucker
J.M. Smucker (NYSE: SJM) stock tanked 12.8% to a 52-week low of $93.30 per share in June after reporting 3% and 13% declines in sales and adjusted earnings per share (EPS), respectively, for its fourth quarter of fiscal 2025. Low demand for dog snacks and sweet baked goods, the recent divestment of pet food brands, and rising costs were largely to blame.
Smucker expects total sales to grow by only 2% to 4% in fiscal 2026, versus 7% last year, and adjusted EPS to fall by 11%.
Smucker's Uncrustables brand, however, reported double-digit sales growth in Q4 and is close to hitting a billion dollars in sales. Meanwhile, Smucker continues to generate solid cash flows and is taking "decisive actions" to revive its sweet baked segment, which has struggled since acquiring Twinkies maker Hostess Brands in 2023.
Should you invest $1,000 in Lululemon Athletica Inc. right now?
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends J.M. Smucker and Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

These Were the 2 Worst-Performing Stocks in the S&P 500 in June 2025

Lululemon (NASDAQ: LULU) stock is already down 37% in 2025, and investors are curious whether this is a buying opportunity.
*Stock prices used were the afternoon prices of July 10, 2025. The video was published on July 12, 2025.
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Should you invest $1,000 in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,010,880!*
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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What's Going on With Lululemon Stock?

Key Points
This top athletic apparel brand's discounted P/E could significantly undervalue its future growth.
This footwear maker is a proven long-term winner and looks oversold at a P/E of 16.
This streaming giant continues to boost engagement with a compelling advertising strategy, and revenue is increasing double digits.
Investing in growing companies can lead to great compound gains over the long term. But sometimes even competitively strong companies will see their stocks collapse over near-term headwinds in the economy or other obstacles. It's just the nature of business.
Fortunately for long-term investors, traders on Wall Street don't look at it that way. The focus on near-term performance leads to swings in share prices that can over- or undervalue a company's true worth. This gives a retirement saver the chance to buy quality stocks on the cheap.
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There are promising growth stocks trading at discounted valuations right now. Read on to learn why three Fool.com contributors believe Lululemon Athletica (NASDAQ: LULU), Deckers Outdoor (NYSE: DECK), and Roku (NASDAQ: ROKU) could be undervalued and due for a rebound.
A bargain in athleisure
John Ballard (Lululemon Athletica): Lululemon is an emerging mainstream brand in athletic apparel, with revenue growing at a 19% annualized rate over the last 10 years. But tariffs on imported goods and sales weakness across the apparel industry have weighed on the company's revenue performance and share price, providing investors a great opportunity to buy the stock on the cheap.
At the recent $235 share price, the stock had slid 54% from its previous high of $516 at the end of 2023. The stock is trading at just 16 times forward earnings estimates, which I believe greatly undervalues the brand's future growth.
Lululemon still has ample room to expand globally. Its trailing-12-month revenue of $10.8 billion pales in comparison to larger rivals like Nike and Adidas, which generate $72 billion in annual sales combined.
Moreover, Lululemon has been growing faster than its larger rivals over the last five years. Lululemon posted a 7% year-over-year increase in revenue in the most recent quarter, which shows strength relative to Nike's recent sales declines. While Adidas managed to grow sales 9% last quarter, it has struggled to keep pace with Lululemon's double-digit annualized growth in recent years.
While the stock price has been cut in half, search interest on Google for "Lululemon" has doubled since 2020. This divergence between growing brand interest and a lower valuation for the stock suggests that investors are significantly underestimating the long-term growth potential of Lululemon, especially in international markets.
Economic headwinds come and go. The stock has been very volatile this year, so investors who buy will have to expect the share price to hit new lows before recovering. But with the stock trading at such a conservative forward price-to-earnings multiple, investors could see a nice return on their investment over the next five years.
An oversold footwear champ
Jeremy Bowman (Deckers Outdoor): You might be surprised but Deckers, the footwear company that owns brands like Hoka and Ugg, has been one of the top-performing stocks on the market over its history, and is up 800% over the last decade.
However, the company has hit a rough patch lately, and the stock is off 52% from its peak at the beginning of the year. A combination of slowing growth, especially in the key Hoka brand; guidance calling for declining profits in the first quarter; a decision not to give full-year guidance due to uncertainty in the market; and pressure from tariffs have all caused the stock to spiral.
In its fiscal fourth-quarter report, its most recent one, the company said that tariffs would add $150 million to its cost of goods sold this year, a substantial headwind for a business set to bring in around $5 billion in revenue. It also sees earnings per share falling from $0.75 to between $0.62 and $0.67 in the first quarter.
There's no question that Deckers is facing short-term headwinds, made worse by the uncertainty around tariffs, but the company has a strong track record with developing brands and steadily growing them, and it's overcome earlier slowdowns at Ugg.
The company also has the potential to develop new brands over the longer term, and it still expects top-line growth, calling for 9% revenue growth in the first quarter and double-digit growth in Hoka for the full year.
At a price-to-earnings ratio of 16, Deckers looks oversold. If it can return to steady growth on the bottom line, the stock looks like a winner.
The ad-supported streaming model
Jennifer Saibil (Roku): Although Roku looked like it was poised for massive success when adoption accelerated under pandemic lockdown orders, the unfortunate aftermath has been slowing growth and heavy losses. It's been challenging for the company to smooth out the business and begin moving forward again, and the market lost patience with it quickly.
However, throughout the difficult time, the company has maintained its dominant position in ad-supported streaming and reported growth. It's pushed through, and the results are starting to pay off. In the 2025 first quarter, revenue increased 16% year over year, with strength in the platform segment. That's mostly the advertising business, its larger segment at 86% of the total.
The company has a clear and specific strategy to generate engagement with its own Roku channel, where much of the advertising magic happens, and it became the second-most watched channel in the U.S. on its network in the first quarter, with an 84% increase in viewing hours year over year.
Management has tweaked the user experience to boost Roku channel viewership, and its home screen content row has been the main entry point to the channel. It's using a powerful artificial intelligence strategy to provide content suggestions on the content row, and a third of households streamed from the content row in the first quarter, driving ad reach and subscription sign-ups.
Recently, Roku excited investors with the announcement of a partnership with Amazon. The two are collaborating to offer advertisers greater reach across the two platforms, and the AI-enabled network facilitates broad but accurate exposure, with more targeted viewers at the same budget.
Roku stock is 82% off its all-time highs, but it's up 40% over the past year. It's making its way back slowly, and now's a good time to get in on the ride.
Should you invest $1,000 in Lululemon Athletica Inc. right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Amazon, Nike, and Roku. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Deckers Outdoor, Lululemon Athletica Inc., Nike, and Roku. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Growth Stocks Down 52% to 82% to Buy Right Now

Snap-on Incorporated SNA is likely to witness top and bottom-line declines when it reports second-quarter 2025 earnings on July 17, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 2.2% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.61 per share but indicates a decline of 6.1% from the year-earlier quarter’s tally. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company has a negative trailing four-quarter earnings surprise of almost 1%, on average. It delivered a negative earnings surprise of 6.2% in the last reported quarter.
Key Factors Likely to Influence SNA’s Q2 Results
Snap-on has been reinforcing its business model through initiatives that enhance value creation across safety, service quality, customer satisfaction and innovation. The company’s strategic growth agenda includes expanding its franchise network, deepening relationships with repair shop owners and increasing its presence in emerging markets. Its focus on Rapid Continuous Improvement, a process aimed at boosting efficiency, controlling costs and enhancing organizational performance, is encouraging. SNA’s innovation pipeline remains strong, with ongoing investments in product development and global brand expansion.
Despite such strengths, Snap-on faces several external challenges. Macroeconomic headwinds, geographic pressures in critical industries and geopolitical disruptions are likely to have weighed on the company’s performance. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability.
In addition, Snap-on has been witnessing sluggishness in its Tools Group unit for a while, owing to lower activity in the U.S. operations and adverse foreign currency translations. We estimate a 4% decline in the Tools Group for the second quarter. Moreover, the company is not fully immune to the tariff-related headwinds.
Nevertheless, Snap-on leverages its manufacturing strategy with quick adjustments to the evolving production landscapes. The automotive repair arena has been strong with household spending on repairs and substantial growth in car repairs. Management had expected SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape, with continuous progress along its defined runways for growth. Our model predicts a 3% rise for the Repair Systems & Information Group for the second quarter.
What the Zacks Model Predicts for SNA
Our proven model doesn’t conclusively predict an earnings beat for Snap-on this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Snap-On Incorporated Price and EPS Surprise
Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Valuation Picture of SNA Stock
From a valuation perspective, Snap-on offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.54x, which is below the five-year high of 18.63x and the Tools - Handheld industry’s average of 17.50x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that SNA’s shares have lost 4.8% in the past three months compared with the industry's 0.8% drop.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Disney DIS currently has an Earnings ESP of +3.41% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DIS is likely to register bottom and top-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $23.7 billion, indicating a 2.4% increase from the figure reported in the year-ago quarter.
The consensus estimate for DIS’ fiscal third-quarter earnings is pegged at $1.47 per share, implying 5.8% growth from the year-ago quarter’s actual. The consensus mark has risen a couple of cents in the past 30 days.
MGM Resorts International MGM currently has an Earnings ESP of +13.08% and a Zacks Rank of 3. MGM is likely to register a top-line drop when it reports second-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.3 billion, indicating a 0.9% drop from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 56 cents a share, implying a 34.9% decrease from the year-earlier quarter. The consensus mark has moved up a couple of cents in the past 30 days.
lululemon athletica LULU currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.5 billion, indicating 7.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s second-quarter earnings is pegged at $2.87 a share, implying an 8.9% decrease from the year-earlier quarter. The consensus mark has dipped 1.4% in the past 30 days.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Snap-on Gears Up for Q2 Earnings: What Lies Ahead for the Stock?

Nike (NYSE: NKE) stock has been in a downward spiral for the past three years as sales declined, and it appeared to be losing its edge.
But all hope is not lost. The company just reported a strong earnings beat, and it's the leader, by far, in its industry. In fact, one Wall Street analyst sees Nike stock shooting 60% higher over the next 12 to 18 months even after it jumped 15% after earnings.
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Should you buy it today?
Getting back in the game
Nike has been dealing with multiple mishaps. It's reestablishing partnerships with wholesalers after cutting some of them out a few years ago; it's getting back on top of its innovation pipeline; and it's going back to sports after prioritizing lifestyle products.
It has a new CEO whom the investing community is pumped about, and he's been making changes that the market is liking. A full turnaround is still in the works, but Nike reported better-than-expected earnings for the 2025 fiscal fourth quarter (ended May 31), and it looks like the plan is taking shape.
Sales were down 12% from last year in the quarter, with Nike Direct sales down 14%. Gross margin declined by 4.4 percentage points to 40.3%, and earnings per share dropped 86% to $0.14. If that doesn't sound so great to you, consider that Wall Street was expecting only $0.12.
Although there's a long way back up, the market appreciated Nike's update and reassurance about how it's progressing. CEO Elliot Hill restructured innovation to focus on lines rather than categories, keeping the athlete at the center. It also widened its wholesale channels to reach more customers in more places, including premium chain Aritzia and Urban Outfitters, which is geared toward the younger shopper. Notably, it's going back to selling on Amazon after a very public breakup five years ago.
Hill, a Nike veteran who's been in the lead role since October, gave some important examples of progress:
Launches through wholesale partners Dick's Sporting Goods and JD.com led to higher sales.
The day before it hosted a race at its LA-based store at the Grove, a premium shopping center had its highest sales in three years.
It presented its best looks from the French Open finals, leading to a 30% sales increase day to day.
Is Nike losing its grip on first place?
Nike's lead against its competition is so wide that it really has no competition, at least for first place. That gives it some wiggle room to fix its mistakes and work things out before the situation escalates, but investors shouldn't ignore the risks.
Some of its competitors have been posting much better performance despite operating in the same environment. Lululemon Athletica, which hasn't been impressing the market lately, still reported a 7% sales increase in its most recent quarter, and new brand On Holding reported a gargantuan 43% increase.
I often cite the Piper Sandler Taking Stock With Teens survey as a good glimpse of how younger customers are shopping because their trends drive future growth. Nike has been in first place for favorite shoe brand for years, and it remained in first place in the recent spring update.
However, Nike's share fell from recent averages of around 60% to only 49%. Converse, which has recently featured in the No. 2 spot, wasn't in the top three.
These findings aren't alarming, but investors should take them into account when making decisions.
A global industry leader
Nike is still the brand to beat, and as it progresses, it's looking more likely to make a real comeback. Several Wall Street analysts upgraded their price targets after the recent report, including HSBC, which upgraded the stock to a buy and gave a price target of $80. Jefferies maintained its price target of $115, which is 60% higher than the stock's recent price.
Nike also pays a growing dividend that yields 2.2% at the current price, which makes it attractive for passive income investors even while the company is still struggling.
If you have a long timeline, you could buy Nike stock today and enjoy the dividend while the stock gets back to work. It's a blue chip stock that should bounce back and offer resilience over time.
Should you invest $1,000 in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Lululemon Athletica Inc., and Nike. The Motley Fool recommends JD.com and On Holding. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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