Coach, Inc. (COH), Marriott International Inc (MAR): A Few Companies that Are Mom Approved

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Lululemon Athletica inc. (NASDAQ:LULU) has been beaten down lately by its lack-of-material yoga pants (costing the company approximately $60 million in sales) and the resignation of CEO Christine Day. Lululemon Athletica inc. (NASDAQ:LULU) recovered from the former of these events but has recently sunk 24% after the news about Day. So this begs the question: buying opportunity, or the start of a bigger downfall?

Personally, I believe that Lululemon Athletica inc. (NASDAQ:LULU) is just in a rut and after this year (8% projected earnings-per-share growth), the company will be back on track in 2014 (17% projected earnings-per-share growth). The stock is still pricey with a 35 price-to-earnings ratio, but when compared to fellow workout growth story Under Armour Inc (NYSE:UA)’s price-to-earnings ratio of 51 it seems like a bargain. Under Armour Inc (NYSE:UA)’s growth has been a lot more steady, but Lululemon Athletica inc. (NASDAQ:LULU) definitely has the potential to get back on track. Even though investors are fearing the worst for this stock at the moment, now might be the ideal time to get in on this comfortable company.

Conclusion

I will definitely keep tabs on these three stocks in the upcoming months and consider an investment. Even though Mom might not be the financial genius in my family (she does hate math), she has provided some potential investments to better my portfolio. You never know where you might find the spark for your next investment, and online articles are not always the answer. When you stop and take a look around in your life from an investor standpoint, it is amazing the things that can pop out.

The article A Few Companies that Are Mom Approved originally appeared on Fool.com and is written by Grant Hosticka.

Grant Hosticka has no position in any stocks mentioned. The Motley Fool recommends Coach, Lululemon Athletica, and Under Armour. The Motley Fool owns shares of Coach and Under Armour. Grant is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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