Lululemon (LULU) might face selling pressure today. The company appointed Nike (NKE) executive Heidi O’Neill.
The yoga clothing firm is relying on O’Neill to revive its U.S. business. Unfortunately, stock markets are not convinced of the new hire. The athleisure firm needs a visionary who can compete with newer companies with fresh products. That includes Alo Yoga and Vuori.
Nike is a struggling athletic clothing firm, too. Markets are pricing in for Lululemon to fail in reviving its growth.
IBM (IBM) fell by 7% in after-hours trade after the firm posted first-quarter results. Revenue increased by 9.5% Y/Y to $15.92 billion. For the year, IBM is forecasting revenue to grow by over 5%. But exchange rates will hurt that growth by 0.5% to 1.0%.
Even though IBM’s dividend rises to $1.69 per share for the quarter, the stock faces selling pressure today.
In the airline space, Southwest Airlines (LUV) risks staying below the $40 trading level. In Q1, the firm posted a 12.8% Y/Y increase in revenue, to $7.25 billion. The adjusted EPS, however, is alarming. It expects an EPS of $0.35 to $0.65, below the consensus of $0.62.
Investors should consider avoiding all airline stocks. The oil prices will possibly worsen if the Strait of Hormuz does not open soon. Airlines are cutting flights, which pressures earnings.
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