Lululemon's growth is expected to reaccelerate in FY25 and beyond, driven by product innovation, inventory optimization, and international market expansion, despite current challenges in the Americas market. Q2 FY24 earnings showed 7% revenue growth and 12% operating income growth, but the Americas segment underperformed, particularly in the women's category, leading to downgraded FY24 guidance. The key metrics for Q3 FY24 include revenue trends in its international and Americas markets, men's and women's categories, and the balance between store and digital sales.
IRVINE, Calif., Nov.
I recommend a buy rating for Mister Car Wash (MCW) due to expected 7% growth in FY24 and accelerated growth in FY25. Despite a decline in membership per store, higher-tier membership upgrades and increased revenue per member indicate strong customer value perception. Risks include a prolonged weak consumer spending environment, but MCW's focus on driving retail traffic and price increases supports a positive growth outlook.
Northland Power posted robust Q2 financials, with significant growth in adjusted EBITDA and cash flow, driven by above-average offshore wind resources and improved performance from international assets. Key projects like Hai Long (Taiwan), Baltic Power (Poland), and Oneida battery storage (Canada) are advancing on schedule, with secured financing and contracts, expected to boost EBITDA and cash flow. Northland stands to benefit from Canada's 30% Clean Technology Investment Tax Credits, directly supporting the Oneida project and potentially aiding future projects.
Onsemi reported better-than-expected Q3 earnings, with EPS of $0.99 and revenue of $1.76 billion, leading to a 5% stock rise. I'm upgrading the stock to a buy for mid to long-term investors due to optimism about EV demand, especially with China's recent stimulus plan, considering Onsemi's high exposure there. In my opinion, Onsemi's valuation is attractive, and the stock is cheap at current levels, with both P/E and EV/Sales ratio significantly lower than peers and the peer group average.
Union Pacific (UNP) shares tumbled 5% Thursday when the big freight train operator posted worse-than-anticipated results and guidance on a weaker business mix and reduced fuel surcharge revenue.
Canadian National Railway Company demonstrates operational resilience, maintaining strong service levels despite labor strikes and wildfires, supporting its status as a reliable dividend growth stock. Canadian National's strategic network and critical supply chain role provide a wide moat, ensuring long-term growth opportunities, especially in international intermodal and grain demand. Despite cyclical headwinds and paused buybacks, CNI's strong balance sheet and consistent dividend growth make it a compelling pick for dividend investors.
ROST's strategic efforts, including store expansion plans and business model, appear encouraging.
Bitcoin-centric stocks like NVDA, CME, IBKR and ACN are poised to gain from the ongoing cryptocurrency rally.
American Eagle Outfitters shows promising growth, with a notable turnaround in its American Eagle brand, achieving four consecutive quarters of sales growth. Despite lowering growth guidance, AEO exceeded sales growth estimates, with a 7% increase in comparable store sales, outperforming consensus estimates. Aerie's sales growth has slowed but remains strong; overall, AEO's gross margins have improved due to cost management and online sales.
Nvidia's shares are roaring back after the company successfully calmed investor concerns about product delays and its long-term growth prospects. Bloomberg's Ryan Vlastelica joins Caroline Hyde and Ed Ludlow to discuss on "Bloomberg Technology.
FMX looks forward to divesting its few logistic operations to Grupo Traxion.