NIKE, Inc. (NKE), Lululemon Athletica inc. (LULU), Sodastream International Ltd (SODA): Big Moats for Your First Stocks

As a retailer of high end, high-priced yoga apparel, consumers expect a certain standard of quality from Lululemon Athletica inc. (NASDAQ:LULU). With that in mind, investors may need to be wary of the fact that Lululemon Athletica inc. (NASDAQ:LULU) is in the process of recovering from a recall. If the Lulu faithful decided to branch out to other retailers in the interim, that could be a problem. However, as it stands right now it appears that the recall has had little effect on the company’s predicted growth potential — at least according to Wall Street analysts. And that’s a promising sign for the company’s future.

Sodastream

When you sneeze, you unconsciously ask for a Kleenex, even though the tissues in your house may not be the iconic Kimberly Clark Corp (NYSE:KMB) brand at all. In a similar way, I believe Sodastream International Ltd (NASDAQ:SODA) will become synonymous with soda making. Other companies will try a hand at designing a soda making product, but it will always be the imitator, and being the product comes with huge competitive edge.

Okay, so it’s not a perfect product. When compared to Coca-Cola, a Sodastream International Ltd (NASDAQ:SODA) isn’t particularly cost effective, and, on top of that, it’s time consuming. Both of those issues, though, are obstacles that I believe the company has the tools to overcome. That’s principally because Sodastream is more environmentally friendly — which customers appreciate — and the product has a wow factor that is difficult to compete with.

From the reviews I’ve read, the soda maker itself works just as advertised. However, there have been some complaints about the quality of the refill flavors. This would be a serious issue if not for Sodastream International Ltd (NASDAQ:SODA)’s new partnerships with Kraft, Campbell, and Ocean Spray. And if that wasn’t good enough, Sodastream has also partnered with Samsung to create the first refrigerator designed to dispense sparkling water.

It’s possible we’re only seeing the tip of the iceberg for Sodastream International Ltd (NASDAQ:SODA)’s potential. As far as I’m concerned, Sodastream has put itself in a fantastic position to continue its prolific growth for years to come.

In Conclusion

After this second stage of analysis, we’re beginning to unveil the true colors of our companies. NIKE, Inc. (NYSE:NKE) and Sodastream International Ltd (NASDAQ:SODA) continue to impress, with Lululemon Athletica inc. (NASDAQ:LULU) starting to lag behind just slightly. But don’t write anyone off just yet. Stay tuned as we revisit our three companies by looking at strength of management.

The article Big Moats for Your First Stocks originally appeared on Fool.com and is written by Dave Koppenheffer.

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