Shares of Lululemon Athletica Inc. LULU continued to trade lower Monday, extending a slide that began on June 5. But the selloff could be nearing exhaustion—and a potential rebound may be on the horizon.Lululemon is oversold and at support. This is why we have made it our Stock of the Day. Stocks that are oversold and at support tend to rally.Stocks trend lower because there isn't enough demand. There are more shares for sale than there are to be bought, forcing the traders who wish to sell to push the pric ...

Market Overview - As of mid-May 2025, the S&P 500 has turned positive year-to-date for the first time in many weeks, indicating a broad recovery across multiple sectors from previous volatility [1][2] - Despite the market improvement, ongoing trade disputes and the Trump administration's tariff policies remain a concern [2] Cogent Communications - Cogent Communications is currently trading at $50.87, with a 12-month stock price forecast of $75.75, indicating a potential upside of 48.91% based on 8 analyst ratings [5][8] - The company has seen a significant drop in share price since February, nearing a one-year low, but has strong growth potential in wavelength services, which have more than doubled in revenue over two years [6][7] - Cogent expects to capture a quarter of the North American wavelength market in the next three years, with current revenue in this category at $7.1 million [7] Regeneron Pharmaceuticals - Regeneron Pharmaceuticals is trading at $571.36, with a 12-month stock price forecast of $890.60, suggesting a potential upside of 55.87% based on 26 analyst ratings [9][10] - The company has experienced a 20% decline year-to-date and a 42% drop over the last 12 months, reaching a multi-year low [10] - Regeneron benefits from a robust pipeline and recent sales growth, achieving $14 billion in sales in 2024, up from over $13 billion the previous year [11] - The company has a low debt-to-equity ratio of 0.09 and initiated dividend payments in February 2025, enhancing its appeal to investors [13] Atlas Energy Solutions - Atlas Energy Solutions is currently priced at $13.23, with a 12-month stock price forecast of $19.81, indicating a potential upside of 49.75% based on 12 analyst ratings [14][16] - The company has faced a 42% decline year-to-date amid broader energy sector turmoil but benefits from a specialized focus with little competition [14][15] - Atlas Energy's operations in the Permian Basin provide a geographic advantage, helping to reduce costs and streamline logistics [15]

Core Viewpoint - United Parcel Service (UPS) stock is currently trading at deep value levels, presenting a generational buying opportunity, as confirmed by Q1 results which indicate that market fears were overreactions [1][5] Financial Performance - UPS reported a -0.9% revenue decline in Q1, primarily due to a nearly 15% contraction in Supply Chain Solutions linked to a divestiture, although core businesses are growing [8] - The U.S. segment grew by 1.4%, while the international segment saw a 2.7% increase driven by a 7.1% rise in average daily volume [9] - Adjusted earnings increased by 4.2% year-over-year to $1.49, significantly exceeding analysts' forecasts by nearly 800 basis points [11] Market Sentiment and Analyst Outlook - Analyst sentiment has shifted from Moderate Buy to Hold, with a consensus price target forecasting a 30% upside from the current trading price near $97 [5] - The stock is trading at a nearly 50% discount to the broader market and under 8X its 2023 EPS forecast, indicating potential undervaluation [6] Institutional Activity - Institutional activity reached a multi-year high in Q1, contributing to market volatility but remained net bullish by the end of the quarter, providing substantial support with ownership above 60% [7] Capital Return and Dividends - UPS has a significant capital return strategy, including dividends and share repurchases, with a reliable annual yield of over 6% and a payout ratio of approximately 60% [12] - Share repurchases reduced the share count by roughly 0.8% year-over-year in Q1, indicating a commitment to returning value to shareholders [12] Margin Improvement - The company has seen steady improvement in operating margins due to transformation efforts, with a 20 basis points improvement in Q1 despite macroeconomic challenges [10] - CFO Brian Dykes anticipates reaching a $3.5 billion target for margin improvement by year-end [11] Balance Sheet Health - Despite the impact of the divestiture, UPS maintains a healthy balance sheet with low leverage relative to equity and assets, suggesting potential for future distribution increases [13]