Lululemon Pre-earnings Analysis Lululemon’s market value has fallen 50% from its 12 month highs, reflecting the company’s slumping sales growth, but some may argue that the stock is entering an attractive range for buyers to begin stepping in. Fierce competition and a cutback on discretionary spending left Lululemon in a tough spot over the last two years. The company went from posting 25-30% quarterly sales growth to just 10% last quarter. This is a trend that we’ve seen across athletic wear, even companies as big as Nike reflecting slowing sales. Nike’s last quarter actually reflected negative growth of -1.44%, leaving investors completely uncertain about the future of the space. Despite the decline in earnings growth, Lululemon’s earnings are still trending...
Broadcom Inc. (AVGO) Stock Analysis Broadcom shares have rewarded investors with an increase of 100% from their 52 week lows, but the stock will be tested in early September on their next earnings report. The software and semiconductor giant has a long history of satisfying earnings, but pressure around the space has increased thanks to Nvidia’s stellar growth. Nvidia’s exponential earnings growth has only raised the bar for names like Broadcom, AMD, and other names within the industry, so Broadcom needs to beat both top and bottom estimates to move the needle. Broadcom is well positioned to take advantage of the artificial intelligence boom. Their experience in the technology industry gives them an edge over start-ups, and their massive stream...
CAVA Group Cava shares have surged 75% from their August lows as strong earnings attract buyers, but is the stock still a buy at its all-time highs? The company’s quarterly growth has been impressive, averaging 31% over the past four quarters. Net income has risen alongside revenue, reaching its highest level since the company’s IPO, with $20 million reported in the last quarter. This upward momentum has driven the stock nearly 400% above its 52-week lows, boosting its market cap to $14.34 billion. Cava’s earnings trajectory has drawn comparisons to Chipotle in its early days, fueling the rally to record highs. Many investors, driven by a “fear of missing out” on the next big chain, are eagerly buying in. However,...
The golden child of the artificial intelligence boom is set to report earnings this Wednesday after market close and it has traders on the edge of their seats. Nvidia, valued now at $3.18 trillion, trails Apple as the most valuable company in the world. Its phenomenal growth can be attributed to the indispensable role they play in the semiconductor space, making themselves the gatekeeper of advanced artificial intelligence. Nvidia has grown its quarterly revenue at an average of 244% over the last three quarters, reaching $26B last quarter. Year over year revenue grew by 125% from 2022 to 2023, closing out the year at nearly $61B. These astonishing numbers catapulted the stock higher, but what amazed investors, is that as...
Kratos Defense & Security Solutions Analysis Defense and security stocks have generally performed well over the past two years as geopolitical unrest continue to create demand for their products and solutions. Kratos has found its way to this multibillion dollar industry and has slowly grown their revenue to the $1 billion mark in 2023. The revenue growth reflects in their stock price, which has grown nearly 60% in the past 12 months. The company is still trading far below their all time highs, but that’s probably for its own good. When Kratos traded at 34.00 in 2021, it was only generating $811 million annually. That means the cost to own the stock was 50% high at a time it was...
