Top Stock Picks for Week of October 17, 2022

lululemon athletica inc. LULU is a yoga-inspired athletic apparel company that creates lifestyle components. lululemon’s shares have outperformed the industry in the past three months. It reported ninth straight quarter of earnings surprise in second-quarter fiscal 2022, while sales beat estimates for the second straight quarter. The top and bottom-line also grew year over year on continued business momentum, which led to robust sales and an improved operating margin. Comps growth was aided by robust traffic trends in both stores and e-commerce. On a three-year CAGR basis, traffic was up 8% in stores and more than 40% in e-commerce. The company is capitalizing on the importance of physical retail and the convenience of online engagement. Backed by the robust first half performance, the company raised its fiscal 2022 guidance.The company is expected to report EPS that’s up from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting an increase from the year-ago period. 

Winnebago Industries (WGO) is a leading producer of recreational vehicles in the United States. Winnebago has been riding on the strength of its acquisitions including Grand Design and Newmar, which have bolstered its product portfolio. The recreational vehicle (RV) maker has also fortified its marine market foothold on the acquisition of Barletta Pontoon Boats, which closed in August. The company's balance sheet and investor friendly moves are praiseworthy. Winnebago’s all-electric e-RV camper van testifies its commitment toward innovation and sustainability. Even with other types of travel returning, the demand for RVs continues to climb as people want to get outdoors and experience the joy of an active outdoor lifestyle alongside friends and family. The market expects Winnebago Industries to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended August 2022. Revenues are expected to be up from the year-ago quarter also.


5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

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lululemon athletica inc. (LULU): Free Stock Analysis Report
 
Winnebago Industries, Inc. (WGO): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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