Better Growth Stock: Nike or Lululemon?
Sportswear companies Nike (NYSE: NKE) and Lululemon Athletica (NASDAQ: LULU) both face big risks over the next few quarters. The stocks have declined in 2022 on fears about slowing spending in the apparel space. Rising costs could pressure earnings, too, and there's a good chance that weaker demand will show up at just the wrong time around the core holiday shopping season.
If investors can look past these short-term issues, though, they could benefit from unusually low valuations for these two successful athletic apparel specialists. But which stock is the better buy right now? Let's take a closer look.
Lululemon has all the characteristics of an attractive growth stock today. Sales gains accelerated to 29% in the most recent quarter and are being lifted by a combination of rising traffic and an expanding store footprint. The company posted a 28% revenue spike in the core U.S. geography last quarter, along with a 35% spike in the international segment .
Source Fool.com
