The stock market dropped again on Thursday as investors await the jobs report in September, which is expected to be out on Friday.
Overall, S&P 500 fell 1.0% to 3,745, while NASDAQ was down 0.7% to 11,073.
Tweet of the Day
The McClellan Oscillator is extremely oversold.
It has now reached the same level as the pandemic lows.
We all know what came thereafter. pic.twitter.com/BvRrdZ8adw
— Game of Trades (@GameofTrades_) October 6, 2022
Meanwhile, Lululemon (LULU) stores are still thriving amidst retail apparel recession.
Chart of the Day
Our chart of the day is the one-year chart of LULU as of September 29, 2022, when the stock was at $300.
Lululemon is a Canadian designer, distributor, and retailer of high-quality athletic appeal and accessories, marketed under the lululemon brand. The brand is known for its technically advanced fabrics, with a superior feel and fit.
Lululemon continued to deliver sparkling results despite a retail apparel recession. Last qtr, it delivered 33% profit growth and surpassed expectations of 13% growth. Estimates are solid too, with expected sales growth of 25% next qtr.
In addition to the remarkable numbers, Lululemon introduced new products last qtr – SenseKit (a running collection), Hike (for outdoor weather conditions) and Blissfeel (a technical running shoe).
LULU is part of the Growth Portfolio. David Sharek’s Fair Value is a P/E of 40. With a current P/E of 30, the stock is undervalued, with a huge upside when we look to next year.