NIKE, Inc. (NKE), Under Armour Inc (UA), Lululemon Athletica inc. (LULU): You Can Run Far With This Stock

As far as Lululemon Athletica inc. (NASDAQ:LULU) is concerned, growth has been spectacular, but there has been a lot of drama. Lululemon has lived at the center of controversy for years. Most recent examples include a see-through yoga pants recall, suspicious timing of insider selling prior to the announcement of CEO Christine Day’s departure, questions about the real reason Day is stepping down, and class action lawsuits.

On the positive side, Lululemon Athletica inc. (NASDAQ:LULU) is all about building a culture. This begins with employees forming personal relationships with customers. As salespeople know, they’re buying you more than the product. Therefore, this is a wise strategy, especially since the company puts an emphasis on health and fitness, which is big deal in today’s world. However, risks outweigh rewards for Lululemon. There are simply too many question marks and risks.

Conclusion

NIKE, Inc. (NYSE:NKE) might be the most mature company of the three, but it’s, by far, the safest, and it’s likely to see future growth based on its increasing global brand recognition, organic growth (aided by innovation), and inorganic growth potential. Furthermore, Nike yields 1.30%, whereas neither Under Armour Inc (NYSE:UA) nor Lululemon Athletica inc. (NASDAQ:LULU) pay a dividend.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica, Nike, and Under Armour. The Motley Fool owns shares of Nike and Under Armour.

The article You Can Run Far With This Stock originally appeared on Fool.com.

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