LULU's Wake-Up Call & 3 Strong Buys You Can't Miss

Yoga pants had a hard day. Our own Jessie Moore and Dan Simms are on the hottest (and nottest) tickers of the day, plus 3 Strong Buy picks to uplevel your watchlist:

🔥 HOT: Smart communications company Ooma (NYSE: OOMA) rose by 24.9% on Wednesday after the company reported excellent second-quarter earnings on Tuesday. Ooma’s loss per share of $0.08 was slightly less than the $0.09 that Wall Street expected to see, and its revenue was $1.4 million higher than analysts predicted. Shares of Ooma are up 4.6% YTD since the company righted the ship back in late April.

🥶 NOT: Luxury fitness-wear brand Lululemon (NASDAQ: LULU) lost 4.6% on Wednesday amid widespread weakness in the consumer cyclical sector. Lululemon has had a tough year and has now lost 49.1% YTD. The loss comes one day before the company is scheduled to report its second-quarter earnings.

🔥 HOT: Even an underperform rating from RBC Capital couldn’t hold Box (NYSE: BOX) on Wednesday. The company gained 10.8% after reporting solid second-quarter earnings despite also issuing weak guidance for the remainder of the 2024 fiscal year. Shares of Box are now up 25.6% YTD.  

🥶 NOT: Shares of AST SpaceMobile (NASDAQ: ASTS) traded lower on Wednesday, losing 10.4% by the closing bell. The company has had an outstanding year so far, and the mini pullback it's entering now is most likely due to shorter-term traders taking some profit. The company also said that it would redeem its publicly traded warrants, which may have contributed to the selloff. Despite Wednesday’s loss, the company remains up 375% YTD. 

Strong Buys: Top Picks from Top Wall Street Analysts 

With WallStreetZen's Top Analysts, you get high-conviction stock ratings from the best stock analysts in the world.  It’s a premium feature on our site, but we’ve unlocked a FREE sampling below:  

1- Uber Technologies Inc. (NYSE: UBER) 

Analyst/Firm: Justin Post / Bank of America

Analyst ranking: Top 1% / average return +25.26% / win rate 70% 

Yesterday’s market close: $71.85 

Price target: $88.00 

• Bank of America's Justin Post maintained their Strong Buy rating and $88 price target on Uber (NYSE: UBER). Here’s why. 
• Uber and Cruise, which is mostly owned by General Motors, announced on 8/22 a multiyear partnership to put self-driving Chevrolet Bolts on the Uber platform starting in 2025, Post told investors.
• However, the analyst pointed out that Uber already has an AV (Autonomous Vehicles) partnership with Waymo, which is backed by Google, and argued that the addition of Cruise "reinforces the concept" that fleet operators, and eventually individual AV owners, will want to use Uber's demand aggregation to get more use out of their assets. 
• Post believes that AV competition is "good for potential long-term Uber partnership economics." Along those lines, the analyst argued that Tesla and Amazon's investments in AVs "could be a long-term net positive for Uber."   
• 15 analysts we track currently rate UBER a Strong Buy. Find out why.

1-year chart for UBER, courtesy TradingView

2- GoDaddy Inc. (NYSE: GDDY) 

Analyst/Firm: Mark Zgutowicz / Benchmark

Analyst ranking: Top 7% / +11.71% / win rate 52%    

Yesterday’s market close: $164.05 

Price target: $186.00 

• Maintaining a Strong Buy rating, Benchmark's Mark Zgutowicz raised their price target on Godaddy (NYSE: GDDY) by 9.4% from $170 to $186 on 8/26.
• Last week, Zgutowicz hosted a "virtual non-deal roadshow" with Godaddy's CFO Mark McCaffrey, and their takeaways from the event catalyzed their price target hike.
• According to the company, its momentum in YTD bundling is not a "one-time" event, the analyst told investors.   
• Instead, management expects that the accretion rate will continue to grow in the coming quarters, driven by renewals and new customers, Zgutowicz added. 
• See what other analysts are saying about GDDY.      

1-year chart for GDDY, courtesy TradingView

3- Constellation Energy Corp. (NASDAQ: CEG) 

Analyst/Firm: David Arcaro / Morgan Stanley

Analyst ranking: Top 10% / average return +7.83% / win rate 52%      

Yesterday’s market close: $193.77   

Price target: $233.00  

• Maintaining a Strong Buy rating, Morgan Stanley's David Arcaro raised their price target on Constellation Energy (NASDAQ: CEG) by 0.4% from $232 to $233 on 8/23.
• Noting that Utilities names outperformed the S&P's +1.22% gain by 560 bps in 2024/07, Arcaro noted that Constellation Energy, in particular, "has a strong cash flow story with positive catalysts ahead."      
• Looking for more analyst coverage on CEG? Click here.      

1-year chart for CEG, courtesy TradingView

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