Love it or hate it, the cold weather is on its way. However, thinking like an investor, there's an opportunity to invest in several companies whose revenues and earnings heat up when consumers get cold.
A strong balance sheet, international growth, and a low valuation make Lululemon a compelling investment. Deckers continues to see strong sales for its top footwear brands.
Deckers Outdoor Corporation stands out as a highly efficient and profitable player in the sneaker and footwear industry. DECK's stock appears underpriced relative to its earnings, especially when compared to peers like NKE, ONON, PUMSY, and BIRK. DECK has a track record of long-term steady growth, and at a market cap of slightly above $10 billion, it still has substantial room to grow.
Overweight in Information Technology (a better performing sector) & overweight Materials (a better performing sector). Overweight Consumer Staples (a weaker performing sector) & underweight Health Care (a better performing sector). We trimmed the existing position in AWI following recent strength.
Fiserv (FI) leads decliners with a 49% drop, driven by leadership turmoil, weak consumer spending, and a downgraded quant rating to 'Strong Sell.' Alexandria Real Estate (ARE) and Robert Half (RHI) suffer from sector-specific headwinds, with ARE hurt by biotech weakness and RHI by declining revenue and a negative outlook. Molina Healthcare (MOH) and Baxter (BAX) face earnings cuts and operation...
According to one measurement, the stock market is the second-most expensive it's ever been. GM soared on its recent earnings report, and the stock could keep climbing.
While Lululemon works to resolve its inventory issues, the stock is trading at a forward earnings multiple of 14. Deckers' Hoka brand is emerging as one of the hottest names in footwear, yet investors can buy the stock at a bargain forward earnings multiple of 13.
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