Group 1 - Technology stocks are currently experiencing a downturn, presenting a potential buying opportunity for investors [2] - Nvidia is highlighted as a key stock to consider during this dip, alongside 19 other technology stocks [2] - The article suggests that the current market conditions may allow for strategic investments in technology companies [2]

Core Viewpoint - The Dow Jones 30 and S&P 500 are experiencing slight pullbacks, but these are viewed as buying opportunities as both indices are expected to continue their upward trends towards significant resistance levels. Group 1: Dow Jones 30 Analysis - The Dow Jones 30 has shown a minor pullback, forming a potential double top, but the market is anticipated to target the 49,000 level in the future [1] - Short-term pullbacks are considered buying opportunities, with the 48,000 level acting as a strong support floor [1] Group 2: S&P 500 Analysis - The S&P 500 has also experienced a slight pullback, indicating a potential buy on the dip situation [3] - The index recently touched an all-time high, suggesting no major issues are present, with the 6,800 level expected to provide support along with the 50-day EMA [4] - The market is expected to challenge the 7,000 level in the near future, reinforcing the buy on the pullback strategy [4]

Group 1: Lululemon Athletica - Lululemon Athletica's stock price has decreased by approximately 45% over the past year due to slowing sales growth in North America, increased competition, tariffs impacting margins, and a recent CEO transition [4][7] - The company announced that CEO Calvin McDonald will leave his position effective January 31, 2026, with interim co-CEOs appointed during the search for a replacement [5] - Elliott Management has taken a significant stake in Lululemon and is influencing the decision regarding the new CEO [6] - In the third quarter, net revenue in the Americas decreased by 2%, with comparable-store sales dropping by 5%, reflecting consumer hesitance in a weakening economy [7] - Conversely, the international segment saw a 33% increase in net revenue in the third quarter, with China experiencing a 46% revenue gain [8] - Lululemon maintains a strong market presence in women's active apparel and is addressing product issues by accelerating development times and planning to refresh 35% of its spring 2026 product lineup [9][10] - The company has a robust balance sheet with over $1 billion in cash and no long-term debt, generating high returns on invested capital (ROIC) of around 30% [12] - Despite the stock's decline, it trades at a forward price-to-earnings ratio of approximately 15, suggesting that much of the negative news may already be priced in [13] Group 2: Zebra Technologies - Zebra Technologies' stock price has fallen nearly 37% over the past year, with the company providing hardware, software, and services that digitize and automate workflows [14] - The Enterprise Visibility & Mobility (EVM) segment accounts for about two-thirds of total revenue, generating $865 million in net sales in the third quarter, contributing to a total revenue of $1.32 billion, which is a 5% increase year-over-year [16] - The Asset Intelligence & Tracking (AIT) segment generated $455 million in net sales, focusing on barcode printing and asset tracking solutions [17] - The demand for Zebra's products is driven by the ongoing shift towards automation and digital transformation, with over 80% of Fortune 500 companies utilizing its technology [18] - Zebra is accelerating its focus on artificial intelligence, integrating advanced chipsets into devices and developing AI-powered applications, with revenue expected to materialize starting in 2026 [19][20] - The company is exiting its autonomous mobile robotics division, indicating a strategic pivot towards AI software and hardware [21]

Core Insights - The Nasdaq index has surged nearly 50% since April, indicating potential overvaluation from a technical perspective, with a notable 6% increase since September [1] - Investors are encouraged to take advantage of the current market conditions to purchase high-quality large-cap stocks that are trading below their historical highs [2] Company Overview: Deckers Brands - Deckers Brands (DECK) is recognized for its strong management, solid balance sheet, and promising growth outlook, having outperformed the S&P 500 over the last decade [3][4] - The stock has increased approximately 1,100% over the past ten years, significantly outperforming the S&P 500's 260% and Nike's 25% [4] - The growth of Deckers is largely attributed to its high-end running shoe brand HOKA, which has achieved a compound annual growth rate of around 50% over the last four years [7] Financial Performance - Deckers has experienced an average revenue growth of 19% from FY21 to FY25 and a 32% increase in GAAP earnings per share (EPS) [8] - Following a Q3 FY25 earnings release that provided weaker guidance, DECK stock fell approximately 48% from its all-time highs [11] - The stock is currently trading at a 30% discount to the Retail-Wholesale sector and 22% below the S&P 500, despite outperforming both by about four times over the past decade [16] Technical Analysis - Deckers stock found support at its long-term 200-week moving average, which has historically indicated potential for upward movement [12] - The stock is trading in line with its 10-year median at 18.1X forward 12-month earnings, suggesting it may be undervalued [16] Future Outlook - Revenue for Deckers is projected to grow by 9% in FY26 and 7% in FY27, with adjusted earnings expected to remain flat year-over-year in FY26 before increasing by 8% in FY27 [15] - The company maintains a robust balance sheet with $1.7 billion in cash and equivalents, $3.8 billion in total assets, and no debt, positioning it well to navigate economic uncertainties [17]

Group 1 - The immediate reaction to price drops is often skepticism, leading to hesitation in buying on the dip [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His policy work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Market Overview - The stock market has recently entered correction territory, defined as a decline of 10% to 20% from its recent peak, with the Nasdaq Composite down 9% year-to-date [1] Investment Opportunities - During market downturns, investment opportunities increase as stock prices may not fully reflect the underlying business values [2] - Three companies identified as solid buys during this correction are Costco Wholesale, Lululemon Athletica, and Target [3] Costco Wholesale - Costco has shown exceptional performance, with a stock price increase of over 200% in the past five years, excluding dividends [4] - The company maintains strong revenue and comparable sales growth, driven by a compelling membership fee model that fosters customer loyalty [5] - Renewal rates for memberships are consistently above 90%, reaching 93% in the U.S. and Canada, even after a recent fee increase [6] - Costco's paid household members increased by 6.8% year-over-year to 78.4 million, with revenue up 9.1% and earnings per share rising from $3.92 to $4.02 [7] - Despite a high P/E ratio of 54, the current dip may present a good entry point for long-term investors [8] Lululemon Athletica - Lululemon has achieved approximately 20% annual growth in revenue and earnings over the past decade, with a current P/E ratio of 23 [9] - The brand has outperformed competitors like Nike, indicating strong brand power and growth potential [10] - For fiscal 2024 Q4, Lululemon expects an 11% year-over-year revenue increase, with international revenue up 33% year-over-year [11] - The company reported $1.7 billion in earnings on $10 billion of revenue over the last four quarters, highlighting its profitability and growth in international markets [12] Target - Target's stock has declined roughly 50% over the past three years due to weak consumer spending and internal challenges [13] - The latest earnings report indicated flat comparable sales and minimal growth expectations for fiscal 2025 [14] - Target's management has outlined a long-term growth plan, predicting a 15% total sales increase by 2030 [15] - The company aims to grow through new store openings, expanding owned brands, and enhancing same-day fulfillment services [16] - Currently trading at a P/E ratio of 12 and offering a dividend yield of about 4%, Target presents a value opportunity for income investors [17] - The recent sell-off may allow investors to acquire shares of this established retailer at a discounted price [18]