This is a time when investors may be better off investing in the ETF sector rather than investing in individual stocks. This is because although many prominent names in the sector are participating in the current rally, they still have some catching up to do.
The good news is that 2025 will be a good year for stocks overall. If consumer confidence leads to income growth, discretionary dollars may start to shake. In this scenario, investors own many stocks that have fallen in 2024 but appear poised to bounce back in line with the consumer. Here are three names to consider.
The basics go hand in hand with this sporting giant
Lululemon Athletica today
Lululemon Athletica
(As of 09:40 AM ET)
- 52 week range
- $226.01
▼
$516.39
- P/E ratio
- 28.15
- Price target
- $377.63
Despite rising more than 57% in the three months ending December 11, 2024, Lululemon Athletica Nasdaq: Lulu The stock is still down more than 21% for the year. However, at around $400 per share as of this writing, the market appears to have done its job in setting a more reasonable expectation for LULU stock.
The decline in the stock price is due to some inventory discrepancies in the United States and a slowdown in China. Both are true, but even though U.S. comparable sales declined 2% year-over-year in the last two quarters, the company still generated higher year-over-year revenues and profits in each of the last four quarters.
But what was good enough two years ago is no longer good enough in 2024. Once the selloff begins, investors no longer need a reason to look for other opportunities. However, with the company forecasting full-year earnings of around $16 and a forward price-earnings ratio of around 28x, the stock appears undervalued with a price target of around $451, which seems reasonable.
There is still room for slippage in CROX stock
Crocs today
(As of 09:39 AM ET)
- 52 week range
- $85.71
▼
$165.32
- P/E ratio
- 8.20
- Price target
- $148.80
Crocs Company Nasdaq: Crocs The stock is up about 19% in 2024, but unlike other consumer discretionary stocks, shares of the iconic shoe company are down about 13% in the past three months. This is a continuation of a trend that began earlier in the year.
Like Lululemon, the issue affecting the stock isn’t related to declining revenues and profits. The company continues to outperform the top and bottom lines on a year-over-year basis. However, in the middle of the company’s Q4 guidance, the company will generate $12.87 in earnings per share (EPS) for the full year. Combined with a forward P/E of 8.62, you get a price of around $110, which is exactly where the stock is trading.
However, analysts have been viewing CROX shares higher since its quarterly earnings report in October. This is likely due to the company’s dual priorities of paying down debt and repurchasing stock. Regarding the latter, the company has already done so $1.1 million stock buyback in 2024 It has $549 million remaining in its existing repurchase license.
YETI stock could be a great gift to give yourself
Yeti today
(As of 09:41 AM ET)
- 52 week range
- $33.41
▼
$54.15
- P/E ratio
- 19.06
- Price target
- $45.46
Yeti Holding Company New York Stock Exchange: Yeti is a luxury lifestyle brand known for its popular coolers and drinkware. The stock has only been publicly traded since 2019, but that’s notable because the company introduced the right products at the right time, as many consumers discovered (or endured) a love for the outdoors in 2020 and 2021.
However, driven by investor optimism and market sentiment – often referred to as “animal instincts” – YETI’s stock price has risen beyond its fundamentals. While revenues and profits remain high year-over-year, this rapid growth was not sustainable after the boom in 2020 and 2021.
However, the stock is still down 13% in 2024 despite rising 19.7% in the past three months. At $44.80 per share as of market close on December 11, YETI stock is near the consensus average. However, the company’s earnings forecasts and forward P/E multiples indicate gains of around 10%. However, this takes into account the company’s plans to increase revenues by 9% for the full year of 2024. This may be too low. This gain may increase if the company implements its plans to buy back $200 million worth of its shares.
Before you consider YETI, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market hits… and YETI was not on the list.
While YETI currently has a “Hold” rating among analysts, the top-rated analysts think these 5 stocks are better buys.
View the five stocks here
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