Investing in Nike(NKE) versus Lululemon(LULU): Which Stock is a Better Buy and Hold?
Wednesday, 3 April 2024, 11:28
Why are these companies down?
The revenue growth for Nike and Lululemon has slowed since 2021, impacting their stock prices.
Nike's Struggles
- Lackluster performance in shoe and apparel sales.
- Fixation on direct-to-consumer sales neglecting traditional channels.
Lululemon's Challenges
- Disappointing Q1 guidance due to a slow U.S. consumer market.
- Optimism-driven sales per square foot in U.S. stores.
Which stock is the better bargain today?
Despite recent performances, Lululemon holds better growth potential and value compared to Nike.
- Lululemon has achieved superior earnings growth over the years.
- Analysts project faster earnings growth for Lululemon.
- Nike's current PEG ratio is higher than Lululemon, indicating better value in the latter.
Considering factors affecting both companies, investing in Lululemon may offer better long-term returns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.