Lululemon Athletica Inc. LULU is a yoga-inspired athletic apparel company that creates lifestyle components.Shares of lululemon continue to show resilience on its sound fundamentals, despite the effects of the pandemic. The company’s shares gained in the past year owing to its robust digital performance, which also aided third-quarter fiscal 2020 results. Notably, top and bottom lines beat estimates in the fiscal third quarter and also improved year over year. The company provided upbeat guidance for fourth-quarter fiscal 2020 after witnessing a robust performance in the holiday season. The company now expects sales and earnings to be at the higher end of the previously issued range. The company expects to capture the growing online demand through its accelerated e-commerce investments. Lululemon remains well-poised financially to steer to the coronavirus situation.
Applied Materials AMAT is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. Applied Materials is driven by strong momentum across Semiconductor Systems and Applied Global Services. Further, solid demand for silicon in several applications across various markets remains a tailwind. Additionally, growing momentum among long-term service agreements is contributing well. Furthermore, increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. Also, strong momentum in conductor etches is benefiting the company’s position in DRAM and NAND. Notably, the stock has outperformed the industry it belongs to over a year. Even though the current global economic risks prevail, spending in China is expected to increase The company remains strongly positioned in China where it continues to see strong growth in semiconductor and display.
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