Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Growth Stock Characteristics - The Zacks Growth Style Score helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Urban Outfitters (URBN) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth seen as a strong indicator of future stock price gains [3] - Urban Outfitters has a historical EPS growth rate of 49.2%, with projected EPS growth of 29% this year, significantly outperforming the industry average of 12.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Urban Outfitters currently has a year-over-year cash flow growth of 22%, compared to an industry average of -3.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.1%, exceeding the industry average of 7.6% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Urban Outfitters has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 0.9% over the past month [8] Group 5: Conclusion - Urban Outfitters has achieved a Growth Score of A and a Zacks Rank 2, indicating its potential as an outperformer and a solid choice for growth investors [10]

Group 1: Company Performance - Middle Coast Investing's collective portfolio outperformed the S&P 500 in Q3 2025, with a return of 9.6% compared to 7.8% for the S&P 500 [1] - The Core U.S. portfolios returned 10%, while the Russell 2000 returned 12%, the S&P 600 returned 8.7%, and the Nasdaq generated 11.2% during the same period [1] - European Portfolios appreciated by 5.5% in Q3 2025 [1] Group 2: Lululemon Athletica Inc. Analysis - Lululemon Athletica Inc. (NASDAQ:LULU) had a one-month return of 4.69% but lost 35.42% of its value over the last 52 weeks, closing at $175.59 per share on October 3, 2025, with a market capitalization of $20.888 billion [2] - The company has faced challenges including tariffs and competition from brands like Alo and Vuori, which have impacted its performance [3] - International growth for Lululemon is not strong enough to offset domestic challenges, leading to a negative outlook for the company [3] Group 3: Hedge Fund Interest - Lululemon Athletica Inc. is not among the 30 most popular stocks among hedge funds, with 55 hedge fund portfolios holding the stock at the end of Q2 2025, up from 48 in the previous quarter [4] - Despite its potential, certain AI stocks are viewed as offering greater upside potential and less downside risk compared to Lululemon [4]

Core Insights - Urban Outfitters Inc. (URBN) has demonstrated strong momentum entering the third quarter of fiscal 2026, supported by record second-quarter results and brand strength across its portfolio [1][11] - Management is confident in achieving high-single-digit total sales growth for the fiscal third quarter and maintaining solid progress for the remainder of the fiscal year [1] Retail Segment Performance - Comparable sales in the Retail segment are expected to rise in the mid-single-digit range, driven by growth at Anthropologie, Free People, and Urban Outfitters [2] - The Nuuly subscription business is forecasted to deliver mid-double-digit revenue growth, supported by continued subscriber additions [2] - The Wholesale segment is projected to post mid-single-digit revenue gains [2] Profitability and Margins - URBN anticipates that the gross profit margin for the fiscal third quarter will be flat compared to the prior year, with lower initial product margins due to higher tariffs offsetting positive impacts from reduced markdowns and improved occupancy leverage [3] - For fiscal 2026, URBN expects a gross margin improvement of 100 basis points from the prior year, with approximately 50 basis points of that improvement occurring in the second half [5][11] Expenses and Investments - Selling, general and administrative (SG&A) expenses are projected to rise slightly faster than sales, primarily due to increased marketing investments for Nuuly and Anthropologie, as well as a pre-holiday promotional push [4] - SG&A expenses for the year are anticipated to grow in line with sales, driven by marketing and labor costs associated with brand expansion and store openings [6] - Capital expenditure is planned at $270 million, with allocations of 50% for retail store expansion, 25% for technology and logistics, and 25% for office expansion [6] Market Performance and Valuation - URBN shares have gained 32.7% year to date, contrasting with the industry's decline of 9.6% [8] - The company trades at a forward price-to-earnings ratio of 13.14X, slightly below the industry's average of 18.12X, and holds a Value Score of A [9] Earnings Estimates - The Zacks Consensus Estimate for URBN's fiscal 2026 earnings implies year-over-year growth of 29.1%, with an 8.7% uptick projected for fiscal 2027 [12] - Estimates for fiscal 2026 and 2027 have been revised upward by 6 cents and 11 cents, respectively, in the past 30 days [12]

Core Insights - The economy outside of data center-related businesses is showing signs of weakness, prompting calls for a Federal Reserve rate cut [1][2] - Upcoming earnings reports from companies like McCormick, Delta Air Lines, and Constellation Brands are critical for market sentiment [1][2][3] Company Summaries - **Constellation Brands**: The stock has fallen out of favor, particularly among Hispanic consumers due to concerns over immigration policies and job losses [2] - **McCormick**: The spice maker is expected to report quarterly results, with potential resilience in a slower economy as spices are seen as affordable alternatives [3] - **Dell**: Anticipated to highlight its analyst meeting, focusing on AI integration with Nvidia [3] - **PepsiCo**: Facing pressure from an activist investor and challenges from the growing popularity of GLP-1 weight loss drugs [5] - **Delta Air Lines**: Considered a tough stock to own, down approximately 5% year-to-date despite being a top performer in its sector [5] - **Levi Strauss**: Expected to report a reliable quarter, showing resilience despite tariff impacts [5] - **Honeywell**: The spinoff of its materials division is viewed as a bold move, with investor day scheduled for Wednesday [4] Economic Commentary - Federal Reserve President Austan Goolsbee's upcoming speech is significant as he is a voting member of the Federal Open Market Committee, expressing caution about rapid interest rate cuts due to inflation concerns [6]

Core Viewpoint - TCW Relative Value Mid Cap Fund reported a strong performance in Q2 2025, with a return of 7.37%, outperforming the Russell Midcap® Value Index which returned 5.35% [1] Company Overview - Urban Outfitters, Inc. (NASDAQ:URBN) is a lifestyle products and services company with a market capitalization of $6.56 billion as of October 2, 2025 [2] - The company operates 744 stores globally, including 257 Urban Outfitters stores, 241 Anthropologie stores, and 237 Free People stores [3] Investment Highlights - Urban Outfitters, Inc. has shown a one-month return of 2.49% and a remarkable 103.93% increase in share value over the last 52 weeks [2] - The stock initially had a market capitalization of $6.5 billion and met four out of five valuation factors: price-to-earnings, price-to-sales, price-to-book, and price-to-cash flow [3] Growth Catalysts - Key catalysts for Urban Outfitters include a turnaround at the Urban Outfitters brand, new product launches, and growth in adjacent product categories [3] - The company plans to clean up inventory and lower markdown levels in fiscal 2026, followed by enhanced marketing efforts [3] - Anthropologie is focusing on expanding in warm weather, athleisure, and intimates and lounge categories, while also seeing positive sales growth in Home [3] - Free People aims to open 25 new stores in 2025, contributing to overall top-line growth and improved cash flow [3]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fun ...

Core Viewpoint - Urban Outfitters (URBN) is showing potential for a bullish trend as it has recently reached a key support level and surpassed the 20-day moving average, indicating positive short-term momentum [1]. Technical Analysis - URBN has recently overtaken the 20-day simple moving average, which is a significant indicator for short-term traders as it smooths out price trends and provides more signals for trend reversals compared to longer-term averages [2]. - A stock price above the 20-day moving average is considered a positive trend, while a price below it signals a downward trend [2]. Earnings Estimates - There have been five upward revisions for URBN's earnings estimates for the current fiscal year, with no downward revisions, leading to an increase in the consensus estimate [3]. - This trend in earnings estimate revisions supports the bullish outlook for URBN, suggesting potential for further gains in the near future [3]. Performance Metrics - Over the past four weeks, URBN has experienced a gain of 9.2%, indicating strong recent performance [4]. - The company currently holds a Zacks Rank of 2 (Buy), which is another strong indicator that the stock may continue to rise [4].

Group 1 - Genesco Inc. announced the formation of the Journeys Global Retail Group to unite the Journeys, schuh, and Little Burgundy brands [2] - The alignment of these brands is expected to create a powerful opportunity across the retail landscape [2]

Athletic retailer Nike Inc (NYSE:NKE) posted a fiscal first-quarter earnings and revenue beat this morning. The company warned holiday season sales could be weaker than usual, though, and noted the impact of higher tariff costs. NKE is still up 3.2% to trade at $71.92 at last check.At least six analysts hiked their price targets after the results, the highest coming from J.P. Morgan Securities to $100 from $93. Analysts already lean bullish on NKE, with 19 of the 36 in coverage calling it a "buy" or better, ...

Core Insights - The company has identified a unique strategy to stimulate growth in its North American market through a partnership with Lululemon, enhancing the appeal of its premium credit card offerings [1][3]. American Express and Premium Credit Cards - American Express is recognized as the leader in the premium credit card sector, particularly with its Gold and Platinum cards, which focus on travel, entertainment, and luxury shopping [2]. Partnership with Lululemon - The recent refresh of the American Express Platinum card includes a new cash back benefit with Lululemon, offering cardholders a $75 quarterly credit, totaling $300 annually [4]. - This partnership could potentially generate $900 million in revenue for Lululemon if 3 million Platinum cardholders utilize the benefit each quarter [5]. - Lululemon's U.S. revenue was $6.5 billion over the last year, and the additional revenue from this partnership could help accelerate growth in a stagnant North American market [6]. International Growth - Lululemon has experienced significant growth internationally, with a 24% year-over-year revenue increase in China and a 15% increase in other global markets [8]. - Revenue from outside North America has surged to nearly $3 billion, up from under $1 billion in 2020, indicating strong international demand [8]. Future Growth Potential - The combination of the Platinum card refresh, new product innovations, and ongoing international expansion is expected to drive Lululemon's consolidated revenue growth to accelerate by 7% over the next year [9]. - Despite recent struggles in North America, Lululemon's stock may be undervalued, trading at a price-to-earnings ratio of 11.7, significantly lower than the S&P 500 average [12]. Investment Outlook - The anticipated growth from the Platinum card partnership and international expansion positions Lululemon for a potential turnaround, making the stock an attractive option for investors following its recent decline [13].