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]

Core Insights - Nike Inc reported a fiscal first-quarter earnings and revenue beat, but warned that holiday season sales could be weaker than usual due to higher tariff costs [1] - Following the earnings report, at least six analysts raised their price targets for Nike, with J.P. Morgan Securities setting the highest target at $100, up from $93 [2] - The stock is on track for its fourth consecutive gain and is attempting to break above the 20-day moving average after a period below this trendline, although it still has a 19.4% year-over-year deficit [3] Market Activity - The options market is experiencing high activity with 118,000 calls and 73,000 puts traded, which is nine times the typical volume for this time [4] - The most active options contract is the weekly 10/3 75-strike call, with new positions being opened at the 73-strike call [4]

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].

Core Insights - American Eagle Outfitters' provocative ad campaign featuring actress Sydney Sweeney successfully attracted nearly one million new customers between July and September, despite facing social media backlash for alleged racist and sexist implications [1][2][15] - CEO Jay Schottenstein defended the campaign, emphasizing the company's commitment to its marketing strategy and rejecting claims of promoting eugenics [3][6][9] - The campaign was further bolstered by a marketing blitz featuring NFL star Travis Kelce, coinciding with his engagement to pop singer Taylor Swift [14] Company Response - The CEO instructed the team to remain calm amid social media pressure and emphasized the importance of not succumbing to fear [3][14] - A small team was assigned to monitor social media reactions, and a polling firm was hired to gauge customer sentiment regarding the ad campaign [12] Financial Impact - Following the campaign, American Eagle's stock surged, and clothing sales increased significantly [2] - The collaboration with Sweeney was viewed positively by branding experts, who noted that the company gained customers by standing firm against backlash [15][16]

Core Insights - Diamond Hill Capital's "Select Strategy" reported a positive but underperforming return of 7.31% (net) in Q2 2025 compared to the Russell 3000 Index's 10.99% [1] - The overall market saw a rebound with the Russell 3000 Index rising approximately 11%, driven primarily by large-cap stocks [1] Company Performance - Lululemon Athletica Inc. (NASDAQ:LULU) experienced a one-month return of -10.54% and a 52-week decline of 32.78%, closing at $179.11 per share with a market capitalization of $20.907 billion on September 29, 2025 [2] - The company faced a challenging quarter with slowed sales both in the US and internationally, contributing to its status as a bottom performer in the portfolio [3] Investment Sentiment - Despite recent struggles, Diamond Hill Capital believes Lululemon remains a relevant brand and is trading at an attractive discount to its intrinsic value [3] - Lululemon is not among the top 30 most popular stocks among hedge funds, although the number of hedge funds holding its shares increased from 48 to 55 in the last quarter [4]

Core Insights - Several American apparel brands and retailers are experiencing a decline in their Growth metrics according to Benzinga's Edge Stock Rankings [1][2] Group 1: American Eagle Outfitters Inc. - American Eagle Outfitters Inc. has seen a significant drop in its growth score from 89.65 to 70.49 over the past week, attributed to the fading momentum from the "Sydney Sweeney effect" [4][5] - Despite the decline, the stock maintains high scores in Value and Growth, with favorable price trends across short, medium, and long terms [5] Group 2: Reitmans Canada Ltd. - Reitmans Canada Ltd. experienced a drastic fall in its Growth metrics from 98.44 to 30.58, following weak quarterly results [6] - The company reported a 4.1% year-over-year revenue decline and a net loss of $7.2 million in Q1, with comparable sales dropping 4.5% [6] - In Q2, revenue remained flat, and same-store sales declined by 1.3%, alongside a 220-basis-point drop in gross margins due to higher promotions and foreign exchange headwinds [7] Group 3: Caleres Inc. - Caleres Inc. saw its Growth score decrease from 91.59 to 48.91 within a week, impacted by soft sales, tariff headwinds, and margin erosion [8] - The company reported a 3.6% year-over-year revenue decline to $658.5 million in Q2 and missed earnings estimates, with gross margins dropping by 210 basis points primarily due to tariff-related issues [8][9]

Core Viewpoint - Opendoor Technologies has gained significant attention as a meme stock, experiencing a dramatic rise from a low of $0.51 in June, driven by retail investor interest and hopes for recovery [1][2] Company Overview: Opendoor Technologies - The stock has increased over 1,500% from its June low, but has faced declines recently [2] Company Overview: Stitch Fix - Stitch Fix is seen as a potential turnaround stock, having previously been a promising player in retail apparel but currently facing challenges [3][6] - The company utilizes AI algorithms to personalize clothing selections for clients, offering a unique shopping experience [5] - Despite initial success during the COVID-19 pandemic, growth has stagnated, and the company has struggled to regain momentum [6] Financial Performance: Stitch Fix - For the fiscal fourth quarter of 2025, Stitch Fix reported an 8% decrease in active clients, which is critical for future growth [10] - The company has no debt, providing some financial stability [9] - Revenue adjusted for an extra week increased by 4.4% year over year, with revenue per active client (RPAC) rising 3% to $549 [15] - Average order value for fixes increased by 12% year over year, marking the eighth consecutive quarter of growth [15] - Loss per share improved to $0.07 from $0.29 the previous year [15] Market Environment - The retail environment is challenging, with consumers reducing discretionary spending, complicating the company's recovery efforts [11] - Management is implementing changes to align with consumer demand, including adding new categories and leveraging AI capabilities [13] Investment Sentiment - Despite a stock drop following fourth-quarter results, Stitch Fix's stock is up 9% this year, but it trades at a low price-to-sales ratio of 0.5, indicating potential value traps [14] - There is speculation that retail investors could rally around Stitch Fix similar to Opendoor, but caution is advised until there are signs of improvement [12][14]

We recently published 15 Stocks Jim Cramer Mentioned As He Said Quantum Computing Worried Him. lululemon athletica inc. (NASDAQ:LULU) is one of the stocks Jim Cramer recently discussed. lululemon athletica inc. (NASDAQ:LULU) made the news earlier this month after its shares closed 18.6% lower on September 5th. Media reports attributed the dip to the firm’s latest earnings release. As for Cramer, he has frequently discussed lululemon athletica inc. (NASDAQ:LULU)’s legal troubles with Costco. The firm has s ...