7.58Open8.97Pre Close2 Volume147 Open Interest322.50Strike Price1.58KTurnover1259.82%IV0.23%PremiumNov 29, 2024Expiry Date7.49Intrinsic Value100Multiplier-2DDays to Expiry0.76Extrinsic Value100Contract SizeAmericanOptions Type0.9088Delta0.0274Gamma40.87Leverage Ratio-637.3805Theta0.0000Rho37.14Eff Leverage0.0008Vega
104712493 : When comparing the earnings prospects of Lululemon, Salesforce, and Chewy, the outlook for each varies based on sector performance and company fundamentals:
Lululemon: The athletic apparel company has shown resilience, with expected earnings growth of 7.5% next year. The company anticipates revenue growth of 8-9% in fiscal 2024, driven by strong brand loyalty and international expansion. However, challenges include high valuation and slowing momentum in some key markets
Salesforce: The cloud computing leader has raised its full-year earnings guidance, reflecting strong performance amid continued digital transformation. Its expected annual earnings per share (EPS) range of $10.03-$10.11 demonstrates robust growth, supported by strategic shifts to improve profitability, including a focus on artificial intelligence
Chewy: The pet e-commerce giant has rebounded from profitability challenges and expects steady demand in its niche market. While its growth is attractive, its earnings depend on maintaining competitive pricing and managing logistics costs effectively
Conclusion:
Salesforce offers the strongest earnings growth potential due to its leadership in a high-growth sector and strategic focus on AI.
Lululemon has solid fundamentals but faces valuation concerns.
Chewy shows promise but operates in a more volatile niche.
Lucas Cheah : $Salesforce (CRM.US)$
Salesforce’s earnings prospects are strong due to its leadership in cloud-based customer relationship management (CRM) solutions. Its focus on AI-driven tools, like Einstein AI, and its Slack integration enhance customer engagement and productivity, driving upselling opportunities. Growing demand for digital transformation across industries supports subscription revenue growth. However, cost-cutting efforts may pressure innovation.
$Lululemon Athletica (LULU.US)$
Lululemon continues to expand its product lines (e.g., men’s wear and Mirror home fitness) while benefiting from global brand recognition and direct-to-consumer channels. Growth in international markets, especially in China, adds significant upside. The women’s activewear category remains a key revenue driver, supported by premium pricing and loyal customers. Supply chain challenges could pose short-term risks.
$Chewy (CHWY.US)$
Chewy’s subscription-based model (e.g., Autoship) drives consistent revenue, supported by strong demand for pet products. Its expansion into high-margin categories like pet healthcare services (Chewy Health) boosts growth potential. The increasing number of pet owners post-pandemic supports revenue growth, though rising logistics costs and consumer spending pressures remain challenges.
In summary:
• Salesforce: Strong in cloud CRM and AI integration, with solid subscription growth potential.
• Lululemon: Expansion in men’s wear and international markets enhances growth despite supply chain risks.
• Chewy: Consistent revenue from subscriptions and healthcare services, though costs may weigh on margins.
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