Tag: long term

Lululemon – Sentiment trading after mixed revenue results

LULU– Lululemon Athletica Inc is a retail athletic apparel company which designs and distributes athletic apparel and accessories.

LULU– Lululemon Athletica Inc

Fundamentals Previously closed at 68.14
Day’s high 68.75
Day’s low 66.96
P/E ratio 37.90
EPS 1.89

 

Analysts opinion LULU announced its Q1 revenues today and its adjusted earnings missed wall street expectations. While revenues were above analyst expectations at $495 Million, Costs were also up 18% at $256.4Million. Lululemon is expanding into menswear, and opening new stores. It missed its earnings expectations by a cent and reported an EPS of $0.30. Analyst confidence meter, a proprietary algorithm of Stockal gives 59% buy based on analyst ratings.
Sentiments The Pre-Market sentiments for Lululemon were pretty negative due to mixed earnings report. However, analysts seem to be positive for the stock. The sentiment index is 125% negative according to Stockal proprietary algorithm.
NA Media Pulse The stock has 100% higher social media chatter than usual.

Disclaimer: This blog contains an aggregated view of analysts and opinions by the author. Do not consider this as financial advice. See http://stockal.com/legalities/

 

Tesla Motors Inc and Square Inc may be good long-term investments

TSLA – Tesla Motors, Inc., develops, manufactures and sells electric vehicles and components. With Credit Suisse restating their positive rating on TSLA, the sentiments are expected to be bullish on the day Tesla unveils its Mass Market product – The Model 3.

TSLA – Tesla Motors, Inc.

Fundamentals Previously closed at 226.89
Day’s high 226.50
Day’s low 235.50
P/E ratio NA
EPS -6.90

 

Analysts opinion Most analysts maintain a “Strong Buy” rating for the stock. Tesla is expected to unveil its Model 3 today, and many potential buyers have lined up for pre-orders. Model 3 is expected to be delivered by 2017. Credit Suisse has announced today that it restates the positive rating for the stock. Several financial Institutions including Norges Bank, Royal London Asset Management Ltd and Perigon Wealth Management LLC have increased their stake in Tesla.
However, there are a few concerns regarding Tesla. Given the track record of Tesla regarding car deliveries, most analysts believe that the Model 3 deliveries for pre-orders will take place only by late 2018. There is also increasing concerns regarding the pricing. Tesla is in negative territory with respect to profits, so managing to deliver model 3 at the promised rate of $35,000 would be highly challenging to the firm. Also, Tesla being a niche player, expansion into a mass-market is a risky venture.
Sentiments Investor sentiments seem to be positive with the upcoming release of Model 3. If Tesla can pull this off positively, its positioning in the market will see a huge change. It will become an environment friendly and mass-market company and a trend-setter in the auto industry which would be the icing on the cake.
Social Media Pulse The stock has 50% lower chatter than usual.

 

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Bluebird Bio and Under Armour may see a positive sentiment in the long run

UA – Under Armour, Inc – last closed at $69.96 – Bullish (Long term)

Under Armour, a sportswear giant’s stocks fell about 11% yesterday, with the news of Morgan Stanley Downgrading the stock to “Sell”. Jay Sole, an analyst at Morgan Stanley, cut its stock price target for UA from $103 to $62. According to Jay Sole, the UA has changed its pricing, and marketing strategy. “UA has always competed on brand image and innovation, rarely on price. This change in trend is a major concern because this positioning threatens to erode UA’s premium brand image and ultimately its long-term growth potential.” he says.

A 2014 report from Sport Scan said Under Armour surpassed Adidas to become the No. 2 sportswear brand in the U.S., trailing only Nike Inc. Under Armour revenue at the company has grown at least 20 percent in 22 consecutive quarters. The revenue for Q3 has been looks good for the company.

The downgradation of the stock looks like the only reason for the stock price fluctuations. So, according to analysts, though the market sentiment is bearish, it might be short lived and the market would be bullish for long term investors.

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