Top 5 Fitness Stocks to Buy Now

4. Lululemon Athletica, Inc. (NASDAQ:LULU)

No of HFs: 50

Total Value of HF Holdings: $1.2 Billion

Lululemon is a yoga-inspired, technical athletic apparel company founded in Vancouver. The company produces and markets technical athletic wear for yoga, running, working out, and alike. During the third quarter of 2020, the company topped analyst expectations for growth with adjusted earnings per share of $1.16, compared to projections of $0.88 per share.

In an article, we mentioned why LULU stocks is a compelling investment case and what Brown Advisory had to say about the stock:

“The recent market volatility afforded us the opportunity to swap out of our position in TJX Companies into Lululemon Athletica. While nothing at TJX was broken, our action was purely an upgrade from one good business model into an even better one, in our view. We believe Lululemon has an exceptional business model within the athleisure apparel space. The company has complete control over its product line distribution, which is rather unique for an apparel company. This gives the company a favorable margin structure, coupled with a fast-growing top line. As compared to TJX, Lululemon also benefits from a higher percentage of sales from e-commerce, which is becoming more important in the near and long term.”

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