2 "Fallen Angel" Stocks Worth Buying Now
A weak retail environment has been a headwind for many consumer brands this year. Celsius Holdings (NASDAQ: CELH) and Lululemon Athletica (NASDAQ: LULU) are two stocks that have fallen well off their highs after posting disappointing financial results. Here's why these "fallen angels" can return to growth and potentially deliver excellent returns to investors.
Shares of Celsius were recently trading at $29.31 after hitting a high of $99.62 earlier this year. The company's revenue soared in 2023 following its distribution agreement with PepsiCo the year before. But a recent decline in revenue sent the stock tumbling. However, a closer look reveals it is just a temporary bump in the road that gives long-term investors a great buying opportunity.
After reporting a year-over-year revenue increase of 37% in Q1, and 23% in Q2, revenue fell 31% in Q3. It's a surprising reversal for a company that has been experiencing strong demand in the energy drink market, but the revenue shortfall doesn't reflect on the company's brand. The lower revenue was caused by supply chain adjustments by the company's largest distributor, which management says has stabilized.
Source Fool.com
Lululemon Athletica Inc. Aktie
Lululemon Athletica Inc. erfreut sich mäßiger Beliebtheit, mit mehr Buy- als Sell-Einschätzungen.
Mit einem Kursziel von 194 € für Lululemon Athletica Inc. könnte der aktuelle Kurs von 100.2 € um mehr als die Hälfte steigen.
