Abstract

This article briefly analyzes the risks, profitability, and market ratios of the stocks of three sportswear brands and gives investment advice for different types of investors. Lululemon, Nike, and VF Corporation are three sports industry brands. First, none of the three stocks are value stocks. Because of its better upward momentum, Lululemon would be a satisfying choice for momentum investors. Due to its insider buying of more than 4% and its highest ROA among them, Lululemon is also the best choice for insider buying and ratio analysis investors. Due to its PEG ratio of less than 1, dividend yield greater than 6, and DCF valuation higher than the current stock price, VF Corporation is popular with PEG, income, and DCF investors. NIKE has a stock buyback of more than 1B USD, which is the highest among the 3 stocks, so stock buyback investors are more inclined to invest in it. Lululemon and NIKE have market caps higher than 15B USD, so they have less size risk, which makes them more favored by index investors.

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