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Investment Strategies / Falling Knives
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Author: rnam   😊 😞
Number: of 1023 
Subject: Fallen knives compared
Date: 03/25/26 12:35 PM
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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?
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