Here's My Top Growth Stock to Buy Now
The recent market turmoil -- spurred by the Federal Reserve's intention to aggressively raise interest rates in an effort to curb soaring inflation -- has caused investors to flee risky sectors in favor of safer ones. Yet, there are some outstanding businesses that can be purchased at discounts to their recent highs.
Consider Lululemon Athletica (NASDAQ: LULU). While investors have soured on it amid a challenging macroeconomic environment, the apparel business continues to exhibit strong fundamentals and continued momentum. And with the shares down 22% this year, this is my top growth stock to buy right now.
Over the past five years, Lululemon has produced a return of 396% for shareholders, easily crushing the S&P 500's 75% gain during the same time frame. This performance can largely be attributed to the company's outstanding fundamentals and growth trajectory. Lululemon's revenue and earnings per share (EPS) increased at an annualized rate of 21.7% and 27.6%, respectively, between fiscal 2016 and fiscal 2021. What's more, the athleisure brand's direct-to-consumer business is thriving, representing 45% of overall sales.
Source Fool.com
