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.

Компания lululemon athletica inc. демонстрирует сильные показатели по многим ключевым метрикам, что указывает на её устойчивость и потенциал. P/E находится ниже медианы отрасли, что может свидетельствовать о недооцененности, однако другие мультипликаторы, такие как P/S и P/B, значительно превышают медианные значения, что указывает на возможную переоцененность. При этом высокая рентабельность (ROE, ROA) и сильные операционные маржи (операционная и чистая) подтверждают высокую эффективность бизнеса. Долговая нагрузка отсутствует, что является явным плюсом для финансовой устойчивости компании. Тем не менее, отсутствие дивидендов также может ограничивать привлекательность для некоторых инвесторов. Выручка и чистая прибыль значительно превышают медианные значения, что говорит о сильном росте. В целом, несмотря на некоторые негативные аспекты, такие как высокие мультипликаторы, основная финансовая картинка остаётся позитивной, что подразумевает возможность дальнейшего роста компании.

lululemon athletica inc.

Key Points
MercadoLibre continues to grow rapidly as it expands access to basic financial services across Latin America.
Lululemon has an enormous growth runway as it expands outside its home market.
Costco is still in the early innings of taking its value-first model to international markets.
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These three companies have proven models, durable demand, and clear paths to reach more customers and grow their revenues and profits over time. Here's why MercadoLibre (NASDAQ: MELI), Lululemon (NASDAQ: LULU), and Costco (NASDAQ: COST) look like compelling stocks to hold for the next 20 years.
1. MercadoLibre
MercadoLibre is Latin America's leading e-commerce and fintech platform, and it's been delivering consistent growth for years. Revenue jumped 45% year over year in the fourth quarter as the company continues to expand access to basic financial services to an underserved population in the region.
Its online marketplace reaches 121 million unique buyers, complemented by its fast-growing payments ecosystem, Mercado Pago, with 78 million monthly active users. Mercado Pago creates a natural cross-selling engine alongside the marketplace, offering shoppers added convenience and special benefits while deepening engagement and supporting long-term growth.
The opportunity ahead remains enormous. In Mexico, one of MercadoLibre's top markets, only about half the population has a bank account, and even fewer have a credit card. That underpenetration in basic financial services could translate into years of runway for Mercado Pago's credit products. The company's credit portfolio surged 90% year over year last quarter.
MercadoLibre's total revenue has compounded at 46% annually over the past decade and 40% over the last three years. For a business operating in Latin America for 26 years, that consistency is remarkable -- and hints at how much more valuable it could be in the next 20 years as it expands and improves customer experiences. The stock's recent dip gives investors a timely chance to start a position.
2. Lululemon Athletica
Lululemon's focus on high-quality apparel and international expansion could make it one of the world's most valuable athletic apparel brands over the next 20 years. Over the past decade, revenue rose at a 19% compound annual rate, nearly matching its pace from the last three years.
The stock is down after a recent slowdown in growth. Revenue increased just 7% year over year in the latest quarter, largely due to weakness in the U.S. market. Moreover, higher tariff-related costs have pressured margins. Management expects demand trends to improve as it refreshes its product assortment this spring.
Lululemon's strong international growth shows that its brand is still resonating. This is a significant opportunity. Mainland China represented 18% of fiscal third-quarter revenue, yet it's the fastest-growing region, with sales up 46% year over year last quarter.
The athletic apparel market has been resilient and is projected to grow from $440 billion to $677 billion by 2030, according to Grand View Research. Given that large opportunity, Lululemon could be a bargain, trading at a 12 price-to-earnings ratio.
3. Costco Wholesale
Costco has followed the same effective growth playbook for decades. It wins a loyal shopper base with cutthroat pricing -- often selling goods close to wholesale prices -- while generating most of its profits from membership fees.
That value-first model has attracted 81 million paid members as of the end of fiscal 2025. Membership has climbed steadily for years, and it continues to reach more customers, with paid memberships up 6.2% in fiscal 2025 and 7.3% in fiscal 2024.
Costco's membership base could look small compared to where it might be in 20 years. This is still largely a U.S.-based business. It operates 633 warehouses in the U.S. and Puerto Rico out of 923 worldwide. China has only seven locations, and Costco's presence in Europe remains limited, with a few locations across markets such as France, Spain, and Sweden.
That leaves plenty of international runway. Investors should appreciate management's slow, deliberate expansion approach, which fits Costco's cost-disciplined culture. Management continues to highlight growth opportunities both at home and abroad.
The stock's valuation looks expensive, but this is why it's a good fit for an investor with a long time horizon. Building a position gradually through market swings can help average out the highs and lows in valuation. Costco's relentless focus on offering customers the best value makes it an unstoppable business for a 20-year investor.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Lululemon Athletica Inc., and MercadoLibre. 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 Monster Stocks to Hold for the Next 20 Years

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in lululemon athletica inc (Symbol: LULU), where a total volume of 17,471 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 83.1% of LULU's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $330 strike call option expiring January 21, 2028, with 1,252 contracts trading so far today, representing approximately 125,200 underlying shares of LULU. Below is a chart showing LULU's trailing twelve month trading history, with the $330 strike highlighted in orange:
Eli Lilly (Symbol: LLY) options are showing a volume of 24,982 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 78.4% of LLY's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $380 strike put option expiring April 17, 2026, with 1,657 contracts trading so far today, representing approximately 165,700 underlying shares of LLY. Below is a chart showing LLY's trailing twelve month trading history, with the $380 strike highlighted in orange:
And Nike (Symbol: NKE) options are showing a volume of 118,175 contracts thus far today. That number of contracts represents approximately 11.8 million underlying shares, working out to a sizeable 75.8% of NKE's average daily trading volume over the past month, of 15.6 million shares. Particularly high volume was seen for the $57.50 strike put option expiring April 17, 2026, with 11,876 contracts trading so far today, representing approximately 1.2 million underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $57.50 strike highlighted in orange:
For the various different available expirations for LULU options, LLY options, or NKE options, visit StockOptionsChannel.com.
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Noteworthy Monday Option Activity: LULU, LLY, NKE

Tariffs News & Market Chaos

Key Points
Lululemon pushed founder Dennis Wilson out of the CEO role in 2013.
Wilson is still one of the largest shareholders and continues to agitate for change.
Lululemon Athletica (NASDAQ: LULU) is a major force in the athleisure category. The clothing company and retailer has a large and growing store footprint, and yet the stock has fallen by around 40% over the past five years and is more than 60% below its high-water mark over that span. That decline has occurred despite ongoing revenue and earnings growth.
The company's former CEO, Dennis Wilson, isn't happy, and he's speaking up. In a recent letter to Lululemon's shareholders, he laid out his concerns.
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Here are three key takeaways.
1. Dennis Wilson is a disgruntled former employee and a big stockholder
Wilson's ire has to be taken in context. Although he founded the retailer, he was ousted as CEO in 2013. It was not a pretty period for the company, and it is likely that Wilson views the current board of directors and leadership as mismanaging "his" company. That's the negative view of this situation, but it has to be considered because it can help justify a potentially adversarial approach from the board.
The flip side is that Wilson is still a large shareholder and has a legitimate concern about the stock's value. His wealth has declined materially, along with every other shareholder's. That he can complain in this way and get media attention for it means that shareholders have someone in their corner. That remains true even if Wilson's motivations go beyond those of a normal shareholder.
2. Wilson's requests aren't unreasonable
Wilson's big complaint is that the board doesn't have broad enough board representation that is relevant to the company's operation. Given that he founded the company, Wilson has a deep understanding of the company and the brand he created. If he believes the board needs new blood, including members with brand, creative, and marketing skills, it is probably worth strong consideration.
Simply put, you should think deeply about Wilson's concerns even if the company pushes back.
3. Change takes time
Wilson claims that Lululemon isn't being responsive. Lululemon claims it is.
It is an ugly fight at this point, and while dramatic, nothing is likely to change in the near term. Board battles, which is what this amounts to, can drag on for a long time, and, for better or worse, Wilson is not operating from a position of strength. While he is a large shareholder, there is only so much he can do beyond complaining loudly.
In the end, Wilson's letter alone is not a reason to buy or sell Lululemon stock. However, it could help inform your thinking about the company. The stock's price-to-sales, price-to-earnings, and price-to-book value ratios are all below their five-year averages, which suggests it is cheap. However, it might be cheap for a reason.
Should you buy stock in Lululemon Athletica Inc. right now?
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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.
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Reuben Gregg Brewer 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lululemon's Founder Dennis Wilson Is Making His Frustration With the Company's Board Clear. 3 Key Takeaways for Investors.

Ralph Lauren Corporation’s RL store expansion strategy is not merely about adding square footage; it is a strategic lever to elevate brand equity and drive higher-quality sales. In the third quarter of fiscal 2026, the company opened 32 owned and partner stores globally, including locations in key cities, such as London, New Delhi and Chengdu. These openings are part of its “Next Great Chapter: Drive” plan, which prioritizes deepening presence in the top 30 global cities, while building long-term growth platforms in the next 20 cities.
Management emphasized that physical stores are central to its consumer ecosystem. Ralph Lauren stores delivered strong comparable growth, supported by full-price selling and immersive brand activations. By expanding in high-traffic luxury destinations and premium malls, the company reinforces its elevated positioning while attracting younger, full-price customers. This strategy aligns with broader gains in average unit retail (AUR), which surged in the quarter, driven largely by reduced discounting and stronger brand desirability.
Store expansion complements digital momentum. Initiatives, such as the AI-powered “Ask Ralph” assistant and growing digital ecosystems across Asia and North America, enhance omnichannel engagement. Physical stores serve as experiential hubs that amplify marketing campaigns and cultural partnerships, from Olympic sponsorships to fashion shows, strengthening long-term loyalty.
With Asia growing more than 20% and China up more than 30%, targeted store openings in growth markets appear particularly accretive. If Ralph Lauren continues balancing disciplined expansion with brand elevation and controlled promotions, store growth should not only lift revenues but also enhance margins and reinforce its luxury credentials over time.
Is Store Expansion a Key Strategy for Ralph Lauren’s Peers?
As lululemon athletica inc. LULU, Columbia Sportswear COLM, and PVH Corp. PVH pursue global growth, investors are increasingly asking whether disciplined store expansion remains a core driver of brand elevation, market share gains and long-term revenue momentum in today’s evolving retail landscape.
lululemon is leaning into store expansion to strengthen its omni ecosystem and elevate brand storytelling. In third-quarter fiscal 2025, it operated 796 stores, adding 47 net new locations year over year, with square footage up 12%. Management highlighted strong international momentum, particularly in China, and emphasized curated assortments and enhanced visual merchandising. If executed well, strategic openings and store optimizations could boost traffic, deepen guest engagement and reinforce long-term brand value.
Columbia Sportswear is accelerating store expansion to elevate brand visibility and deepen direct-to-consumer engagement. In its fourth-quarter fiscal 2025earnings call management underscored selective openings, remodels and format upgrades aimed at improving productivity and showcasing innovation. By tightening assortment, enhancing in-store storytelling and leveraging omni capabilities, the company aims to drive higher traffic and conversion. If disciplined execution continues, a refined retail footprint could strengthen brand equity and support sustainable sales growth.
PVH Corp is leveraging selective retail expansion to elevate brand desirability and drive DTC growth. In third-quarter fiscal 2025, management highlighted new flagship openings, shop-in-shop upgrades and continued APAC store expansion to strengthen marketplace execution. Flagships in Tokyo and SoHo, alongside elevated in-store concepts, are designed to amplify brand storytelling for Calvin Klein and Tommy Hilfiger. If coupled with product innovation and digital momentum, disciplined expansion could enhance brand equity and support sustainable sales growth.
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Can Ralph Lauren's Store Expansion Boost Brand Value & Sales?

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advanced Micro Devices Inc (Symbol: AMD), where a total of 329,556 contracts have traded so far, representing approximately 33.0 million underlying shares. That amounts to about 76.5% of AMD's average daily trading volume over the past month of 43.1 million shares. Especially high volume was seen for the $160 strike put option expiring March 06, 2026, with 14,262 contracts trading so far today, representing approximately 1.4 million underlying shares of AMD. Below is a chart showing AMD's trailing twelve month trading history, with the $160 strike highlighted in orange:
Chevron Corporation (Symbol: CVX) options are showing a volume of 72,578 contracts thus far today. That number of contracts represents approximately 7.3 million underlying shares, working out to a sizeable 64.7% of CVX's average daily trading volume over the past month, of 11.2 million shares. Especially high volume was seen for the $197.50 strike call option expiring March 20, 2026, with 4,888 contracts trading so far today, representing approximately 488,800 underlying shares of CVX. Below is a chart showing CVX's trailing twelve month trading history, with the $197.50 strike highlighted in orange:
And lululemon athletica inc (Symbol: LULU) saw options trading volume of 13,717 contracts, representing approximately 1.4 million underlying shares or approximately 64.7% of LULU's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $162.50 strike put option expiring March 06, 2026, with 1,007 contracts trading so far today, representing approximately 100,700 underlying shares of LULU. Below is a chart showing LULU's trailing twelve month trading history, with the $162.50 strike highlighted in orange:
For the various different available expirations for AMD options, CVX options, or LULU options, visit StockOptionsChannel.com.
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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.

Notable Monday Option Activity: AMD, CVX, LULU

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Roblox?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Roblox (RBLX) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at -$0.34 a share 28 days away from its upcoming earnings release on October 31, 2024.
Roblox's Earnings ESP sits at +11.83%, which, as explained above, is calculated by taking the percentage difference between the -$0.34 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.39. RBLX is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RBLX is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Crocs (CROX) as well.
Crocs, which is readying to report earnings on November 7, 2024, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $3.16 a share, and CROX is 35 days out from its next earnings report.
The Zacks Consensus Estimate for Crocs is $3.11, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.4%.
RBLX and CROX's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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How to Find Strong Consumer Discretionary Stocks Slated for Positive Earnings Surprises

In the global athleticwear arena, NIKE, Inc. NKE and lululemon athletica inc. LULU embody two distinct models of market leadership. NIKE stands as the industry’s dominant force, commanding the largest share of the global sportswear market through its expansive footwear, apparel and equipment portfolio. Its scale, athlete endorsements, innovation pipeline and vast direct-to-consumer network reinforce a powerful competitive moat across performance and lifestyle categories.
lululemon, while smaller in overall market share, has carved out a premium niche in athleisure. Built on technical fabrics, community engagement and brand exclusivity, it commands strong pricing power and loyalty, particularly in women’s apparel, while expanding into men’s wear, footwear and international markets.
The contrast is strategic: NIKE competes on breadth and global reach, leveraging volume and brand heritage, whereas lululemon emphasizes focus, margin discipline and premium positioning. As athleticwear demand shifts toward wellness-driven lifestyles, the question is whether scale or specialization ultimately defines long-term market leadership.
The Case for NKE
NIKE’s case rests on its reaffirmed industry leadership and accelerating sport-driven momentum. The company is benefiting from its dominant market position in a structurally growing global athleticwear industry. NIKE remains the category leader, operating across more than 190 countries and commanding the largest share of the global sports footwear and apparel market. Management reiterated that Running has been gaining share for multiple consecutive seasons, underscoring the brand’s ability to win in core performance categories. With North America and EMEA representing nearly three-fourths of the business and operating in a healthier marketplace environment, NIKE’s scale advantages in sourcing, marketing and distribution reinforce a competitive moat that few peers can replicate.
NIKE’s “sport offense” centers on athlete-led innovation and deeper category segmentation. The portfolio spans Nike, Jordan and Converse, enabling reach across performance and lifestyle, multiple price tiers and broad demographics. The company is expanding beyond legacy franchises, building depth across men’s, women’s and kids’, while investing in differentiated platforms such as Nike Mind and Aero-FIT. A more disciplined digital strategy, focused on premium positioning and fewer promotions, aims to reinforce pricing power and long-term brand heat.
However, risks remain. The gross margin pressure has been notable, with margins declining 300 basis points due to tariff impacts and inventory actions in China. The strategic pullback in Classics created a significant revenue headwind, exposing near-term portfolio gaps. Greater China continues to face structural and macro challenges, requiring a path back to double-digit EBIT margins. While inventory levels are improving, execution risk remains as NIKE balances brand elevation with competitive intensity in a price-sensitive global consumer environment.
The Case for LULU
The investment case for lululemon is anchored in its leadership within the premium athleisure segment and its growing relevance across the broader athleticwear industry. While its total market share remains smaller than that of global sportswear giants, the company continues to gain share in women’s leggings and technical apparel, reinforcing category authority. Its core women’s business remains a powerful growth engine, supported by innovation and strong full-price sell-through. International markets, particularly China, are contributing meaningful growth, expanding lululemon’s global footprint beyond its North American base. However, its concentration in premium price tiers exposes it to discretionary spending cycles.
lululemon is executing its Power of Three ×2 roadmap, expanding across product, men’s, footwear and international markets. The men’s category continues to scale and represents a key diversification lever. Digital remains a structural advantage, accounting for a significant share of revenues and driving higher-margin direct-to-consumer engagement. However, expansion into newer categories like footwear introduces execution risks and competitive intensity in premium activewear is rising.
lululemon delivers strong profitability and disciplined inventory management. Yet management flagged margin headwinds tied to investments and product mix shifts. While brand heat and pricing power remain intact, sustaining high growth in an increasingly crowded and macro-sensitive environment will be critical to preserving its market position.
How Does Zacks Consensus Estimate Compare for NKE & LULU?
The Zacks Consensus Estimate for NIKE’s fiscal 2026 earnings implies a year-over-year decline of 27.3%, while the estimate for revenues suggests growth of 1.1%. The EPS estimate has been unchanged in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 sales suggests year-over-year growth of 4.6%, while that for EPS indicates a decline of 10.8%. The EPS estimate has been unchanged in the past 30 days.
Image Source: Zacks Investment Research
This clearly illustrates that both NIKE and lululemon have witnessed downward estimate revision trends in the past 30 days. Moreover, estimates for both NKE and LULU indicate year-over-year declines in earnings for the current year.
Price Performance & Valuation of NKE & LULU
Shares of both NIKE and lululemon have witnessed growth in the past three months. NIKE shares have risen 5.6%, while the lululemon stock has gained 10.4%.
Image Source: Zacks Investment Research
NIKE is trading at a forward price-to-earnings (P/E) multiple of 29.88X, below its median of 30.02X in the last five years. lululemon’s forward P/E multiple sits at 14.57X, below its median of 28.7X in the last five years.
Image Source: Zacks Investment Research
lululemon’s stock looks cheap from a valuation perspective. Moreover, investments in product innovation, guest experience and market expansion, as part of the Power of Three X2 growth plan, highlight its growth prospects.
NIKE does seem pricey. However, its valuations reflect its focus on repositioning itself to be more competitive and drive sustainable, profitable long-term growth. If the company sustains its execution, the premium can be warranted.
Conclusion
In the battle between scale and specialization, both NIKE and lululemon present compelling yet contrasting investment narratives. NIKE’s global dominance, broad portfolio and deep-rooted brand equity provide unmatched reach across performance and lifestyle categories. Recent share momentum reflects investor confidence in its repositioning strategy and sport-led innovation push. However, earnings estimate cuts, margin pressures and China-related challenges highlight that the turnaround is still in progress. At nearly 30X forward earnings, the stock trades at a premium, leaving limited room for execution missteps.
Meanwhile, lululemon offers a more valuation-driven growth story. Trading well below its historical multiple, the stock appears inexpensive relative to its long-term potential. Its strong positioning in premium athleisure, disciplined inventory management and expansion into men’s and international markets support structural growth. However, earnings declines, rising competition and execution risks in newer categories remain watchpoints.
Ultimately, NIKE represents stability and scale at a premium, while lululemon offers growth optionality at a discount, provided execution holds. NIKE and lululemon currently carry a Zacks Rank #3 (Hold). 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.

NIKE vs. lululemon: Which Stock Offers Better Upside Potential?

Making financial headlines on Friday, the Supreme Court ruled 6–3 that President Trump exceeded his legal authority when he imposed sweeping global tariffs using the International Emergency Economic Powers Act (IEEPA) — a 1977 law intended for genuine national-security emergencies, not broad economic policy.
While markets will ultimately interpret the ruling over time, some of the potential positive effects include lower input costs for U.S. companies and, eventually, reduced trade uncertainty.
Of course, the potential negative or mixed effects may be short-term stock market volatility and sector-specific pressure on companies that benefited from tariff protection, such as certain steel or aluminum producers that could see downward pressure as foreign competition becomes cheaper.
Notably, the Supreme Court’s decision invalidates the tariffs imposed under IEEPA but does not resolve whether importers will receive refunds, a sum estimated at over $200 billion.
That said, here are a few stocks to watch on the positive beneficiary side of things that may be entitled to these rebates or will at least have better operating visibility going forward.
Apple & Amazon
Outside of semiconductors, which were mostly immune to higher tariffs, some notable tech stocks could benefit from the Supreme Court’s ruling, especially Apple AAPL and Amazon AMZN.
To reduce exposure to higher U.S. tariffs on China, Apple has undergone costly operational shifts to move some of its production to India and Vietnam, and has still paid an estimated $3 billion in tariffs under Trump’s trade policies.
Furthermore, the “de minimis exemption” is expected to go back in to affect, which allows low-value imports under $800 to enter the U.S. duty-free and would directly benefit Amazon’s e-commerce operations.
Automakers
There is a caveat here, as General Motors GM has clearly faced more tariff costs than Ford F.
GM has faced a multi-billion-dollar per year tariff burden under Trump’s policies for a total sum that’s estimated at $6.1-$7.1 billion.
On the other hand, other domestic automakers, including Ford, have reportedly thanked Trump for foreign tariffs on medium-and heavy-duty trucks, which they believed benefited U.S. automakers.
Apparel Retailers
Apparel retailers such as Nike NKE and Lululemon LULU were pushed to shift or reconsider parts of their foreign production due to Trump-era tariffs and have also dealt with a significant supply-chain disruption because of such.
The reinstated "de minimis exemption” should help here as well, and as potential buy-the-dip targets, Nike stock is down 40% in the last two years, with Lululemon shares plunging nearly 60%.
Image Source: Zacks Investment Research
Home Builders
Lower mortgage rates usually come to investors' minds first regarding a catalyst that can propel homebuilders, but higher material costs have weighed down their potential.
Lower import costs on certain essential construction materials could be very beneficial for homebuilder stocks like Toll Brothers TOL and Lennar Corporation LEN.
To that point, the Producer Price Index (PPI) for construction has been at an all-time high, which measures the average change in selling prices received by domestic producers for their construction output.
Image Source: Federal Reserve Economic Data
Bottom Line
Investors will certainly be monitoring the potential tariff relief impact on the global economy, and these stocks could be poised to benefit. On the flip side, many basic materials stocks have benefited from Trump's tariffs, like domestic steel and aluminum producers, and the president plans to seek other routes under the Trade Act to keep these policies in place, such as section 122.
#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.
See This Stock Now for Free >>
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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.

Stocks to Watch as the Supreme Court Rescinds President Trump's Tariffs

Gildan Activewear Inc. GIL is likely to register top-line growth when it reports fourth-quarter 2025 results on Feb. 26. The Zacks Consensus Estimate for revenues is pegged at $885.3 million, indicating a rise of 7.8% from the year-ago figure.
The consensus estimate for earnings is pegged at 94 cents per share, which indicates a 13.3% increase from the year-ago quarter’s actual. The consensus mark has remained unchanged in the past 30 days.
Gildan Activewear has a trailing four-quarter average earnings surprise of 2.6%. In the last reported quarter, the company delivered an earnings surprise of 2%.
Key Factors Likely to Impact GIL’s Q4 Results
Gildan Activewear’s upcoming quarterly results are expected to reflect gains from its Sustainable Growth Strategy, which focuses on expanding capacity, driving innovation and advancing ESG initiatives to strengthen competitiveness. The performance is likely to have been further supported by a robust business model and sturdy execution of its strategic priorities.
The company, which has concluded the acquisition of HanesBrands, is gaining from a higher market share, led by strength in brands, product innovation and solid customer service. It has been enhancing its commercial capabilities to deliver the best offering to customers. GIL is focused on the optimization of manufacturing processes and the implementation of cost-reduction initiatives. The Activewear segment continues to gain momentum, fueled by market share expansion and strong demand. Gains from these initiatives are likely to have benefited the to-be-reported quarter’s performance.
On the flip side, a tough operating landscape, including the inflationary pressures, is a concern. The company has also been witnessing softness in the hosiery and underwear category for a while. In addition, higher operating expenses are likely to have somewhat dampened its profitability in the quarter under review.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Gildan Activewear 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, which is not the case here.
Gildan Activewear has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Gildan Activewear, Inc. Price and EPS Surprise
GIL’s Valuation & Price Performance
From the valuation standpoint, GIL has a forward 12-month price-to-earnings ratio of 15.72x, which is below the industry’s average of 16.41x. Also, the stock is trading below its five-year high of 21.94x.
GIL shares have gained 31.2% in the past six months, outperforming the industry’s growth of 0.1%.
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:
Interparfums, Inc. IPAR currently has an Earnings ESP of +2.56% and a Zacks Rank of 2. IPAR is likely to register a top-line increase when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $385.9 billion, indicating a 6.8% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for IPAR’s fourth-quarter earnings is pegged at 78 cents a share, implying a 4.9% decrease from the year-earlier quarter. IPAR has a trailing four-quarter average earnings surprise of 5%.
Carnival CCL currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. CCL is likely to register growth in its top and bottom lines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.1 billion, indicating a 5% increase from the figure in the year-ago quarter.
The consensus estimate for CCL’s earnings is pegged at 18 cents per share, implying a 38.5% surge from the year-ago quarter’s actual. CCL displays a trailing four-quarter earnings surprise of 160%, on average.
lululemon athletica LULU currently has an Earnings ESP of +0.88% and a Zacks Rank of 3. LULU is likely to register a top-line decrease when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, indicating a 0.2% drop from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.75 a share, implying a 22.6% decrease from the year-earlier quarter. LULU has a trailing four-quarter average earnings surprise of 7.8%.
#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.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	14.02 20.02
Price/Sales	2.02 0.68
P/B	4.85 1.89
P/FCF	20.44 14.51

Indicator	TTM Median
ROE	39.79 14.81
ROA	25.06 5.17
ROI	0.00 8.61
Net Worth	21.95 0.87
Quick Ratio	1.05 0.88
Current Ratio	2.13 1.44

Indicator	TTM Median
Net Profit Margin	16.82 5.71
Operating Margin	22.04 8.20
Gross Margin	58.41 38.48
Return on tangible equity	41.48 21.87

Indicator	TTM Median
EPS	3.10 0.45
EPS Forecast	2.84 0.44
Revenue	2.57B 185.00M
Gross Profit	1.43B —
EBITDA	563.00M —

lululemon athletica inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

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Efficiency

Other ratios

Revenue