No. of Recommendations: 1
Lululemon and Novo Nordisk have each fallen 50% over the last year, while Nvidia is up 50%. NVDA is not really a falling knife, but has fallen 9% from its recent high before the Iran war.
LULU is trading at 13 FWD PE with 3-5 year FWD EPS growth rate of 7%.
NVO is trading at 11 FWD PE with 3-5 year FWD EPS growth rate of 2%.
NVDA is trading at 22 FWD PE with 3-5 year FWD EPS growth rate of 38%.
All totally different businesses, LULU and NVO have struggled with declining product quality and increased competition. Both changed CEOs recently.
NVDA is having a dream run in a hyper growth new market, with inferior to no competition. It continues to be run by a visionary, founder CEO who whispers in the ears of the most powerful leaders in the world.
Which of these 3 companies would you invest in now for the best 5 year return?
