Your thoughts on LULU, RH and CROX? I bought them recently in expectation of a China tariff deal ultimately getting done. (NKE's Q results released today probably doesn't hurt sentiment). Are there any other names you would be interested in for a significant bounce?
Thanks as always.
Dave
We think ATZ and GOOS could also bounce on some good trade news.
We like CROX. The combination of a very low valuation and lower debt should, eventually, get noticed.
LULU has been hit hard this year, but we think it has recovery potential. Its new valuation is lower than it has been historically. It seems to have lost its way a bit, but it is still expected to show decent growth and the balance sheet is strong. It has recovered from missteps before and we would not rule it out here. RH likely has the most short term bounce potential, as shares were simply crushed in the trade war. A deal with Vietnam helps and consensus still calls for very strong earnings growth both this year and next.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in LULU, CROX.