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Alec Taylor, Jr. It is now bouncing off that support line — a strong sign that the uptrend is in-tact. First, the athletic apparel market is on fire and projects to remain on fire. Second, Lululemon is the hottest brand in that athletic apparel market and should remain so for the foreseeable future.

On the first point, the athletic apparel market is the shining star of the retail world. Retail sales have been moving higher at a steady pace, thanks to healthy labor conditions.

But athletic apparel sales have been outpacing the crowd. This is due to secular trends, such as eating right, being fit, and staying healthy, the sum of which have pushed consumers to workout more and live healthier, more active lifestyles. A big part of that is buying the right clothes to fit that lifestyle — hence, the big surge in athletic apparel spend over the past few years. On the second point, Lululemon is the hottest and most relevant brand in the athletic apparel space.

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  • Thanks to genius marketing and merchandising, Lululemon has struck the sweet spot of controlling high prices and still driving big demand, all while maximizing brand equity. In striking this sweet spot, Lululemon is driving mass market demand at favorable price points. The result? Big comparable sales growth, big margin expansion, and even bigger profit growth. This dynamic projects to persist for the foreseeable future.

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    Because Lululemon is still small. Thus, Lululemon has plenty of runway to keep growing at a robust rate for a lot longer. Thus, investors today are craving consumer exposure. The highest quality form of consumer exposure is exposure to the athletic apparel industry since secular tailwinds have and will continue to promote above-trend growth across this whole space. In that athletic apparel industry, the company that stands out from the pack as the fastest grower with the most long-term potential is Lululemon. For the foreseeable future, investors will follow that same logic train to arrive at the same conclusion.

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    See late , late March , and early June Today belongs in that list, too. LULU stock is consolidating around its day moving average amid trade war turbulence. The implication is that once this trade war turbulence passes, LULU stock will fly higher. Specifically, this is a big growth company, in a secular growth market, with very little competition, which runs at huge margins, with a ton of runway to keep growing, and the potential to produce huge profits at scale. Long story short, Chegg is the digital education company that high school and college students across America have needed for the past decade.

    Everything high school and college students interact with these days is all digital. The one big exception?

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    The academic world has been slower to pivot to the digital revolution. Chegg is changing that. They have made a digital education companion built for students in the 21st Century, complete with digital on-demand tutoring services, e-textbooks, tutorial videos, solution manuals, writing help, citation makers, so on and so forth. Chegg bundles all these services into a subscription offering, and sells that to students across America.

    The best part? Chegg is only getting started. They have about 3 million subscribers on their connected learning platform. There are 36 million high school and college students in the U. Thus, Chegg is penetrating a very small portion of its addressable market. Fast forward 5 years. Chegg will have a lot more subscribers, a lot more revenues, and a lot more profits. CHGG stock price should be significantly higher, too. First, Chegg has been a shining star in a flat market. Investors will want to stick with this strength so long as the trade war hangs around.

    Second, Chegg is a big growth stock with a big valuation. The stock derives a ton of its value from future profits. As mentioned earlier, those profits get a boost when rates are low. Third, this is a U. While the global economy may be slipping, the U. Further, this is a U. The stock is currently testing the support line of that uptrend. Will it hold? IMDb More. Triple Threat Hide Spoilers. My advice is don't build your hopes up. I can look past awful dialogue and ridiculous situations if the action is good but theres nowhere near enough to keep you distracted from what is, a bad movie.

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