The Ultimate Crypto Growth Play for Your $1,000 Right Now
Crypto's sleeping giant just woke up—and it's not Bitcoin.
The DeFi Revolution You're Missing
While traditional finance sleeps on blockchain, decentralized protocols are eating their lunch. Yield farming returns that make bank CDs look like pocket change. Liquidity pools generating passive income while Wall Street fund managers collect 2-and-20 fees for underperformance.
Smart Money's Already Moving
Institutional capital flooding into crypto infrastructure plays. Blockchain scaling solutions processing transactions at fractions of traditional finance costs. Zero-knowledge proofs making legacy banking security look medieval.
Your $1,000 Escape Plan
Forget chasing last cycle's winners. The real alpha's in layer-1 protocols with actual developer activity and real-world adoption. Projects with tokenomics that don't rely on greater fool theory—imagine that.
While hedge funds overcomplicate everything with derivatives and leverage, sometimes the best trade is buying assets that actually do something useful. Revolutionary concept, I know.
Better growth in North America
Lululemon's stock price has been hurt because of a revenue slowdown in North America. The entire apparel space has been hit, with larger brands such asseeing declining sales in the important United States and Canadian markets in recent quarters. While it is not immune from broader consumer spending trends, Lululemon's business is still growing, with Americas revenue up 1% year over year last quarter. This may not look like a growth stock, but it is much better than its peers.
For example, last quarter its competitor Athleta had a 9% decline in revenue. Management believes that the Lululemon brand is still gaining market share in the premium athleisure space, and it just signed a new marketing partnership withthat could drive wealthy customers to spend more on Lululemon products.
Once the consumer slowdown in athleisure ends, Lululemon is poised to accelerate its revenue growth in North America, which was still 70% of total net revenue as of last quarter.
Room for international expansion
Over time, North America is going to become less important for Lululemon. Why? Because of the huge runway the brand has for global expansion.
In China, the company's revenue is growing 24% year over year in constant dollar terms, which has exploded from $434 million in total revenue in 2021 to $1.5 billion in revenue over the last 12 months. With 1.4 billion people in the nation (going through a consumer recession at the moment), Lululemon is poised to keep expanding in China as well as other Asian countries.
Europe and Latin America have untapped potential. Lululemon just announced a flagship store in Milan, which could spur growth in the fashion-forward country. If brands like Nike and Adidas can do well globally, I see no reason why Lululemon WOULD not have similar success. This provides Lululemon a much longer growth runway than investors are giving it credit for.
Total revenue was $10.9 billion over the last 12 months. With a recovery in North America, expansion in China and Europe, as well as general economic tailwinds, I think Lululemon can reach $20 billion and eventually $30 billion in annual sales within the next 10 years.
LULU Stock Buybacks (TTM) data by YCharts
Smart capital allocation and a cheap price
Lululemon's share price is in the gutter, and management is trying to take advantage of the situation with a smart share buyback program. Over the last 12 months, Lululemon repurchased $1.444 billion worth of stock, or a buyback yield of 7% versus the current market cap of $20 billion. If this continues, Lululemon's shares outstanding should fall at an accelerating rate, which will accelerate the growth in earnings per share (EPS), the key driver of stock performance over the long haul.
The stock looks cheap at today's levels. It has a price-to-earnings ratio (P/E) of 12, which is well below theaverage of 30. Lululemon will have tariff-related headwinds in future quarters, but it is not going to kill the business and will (hopefully) not last forever. Put it all together, and Lululemon looks like the ultimate growth stock right now. Take $1,000 and buy a few shares for your portfolio. You likely won't regret it a decade from now.
