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Chicago, IL – July 25, 2025 – Zacks Equity Research shares Robinhood HOOD as the Bull of the Day and Alpha Metallurgical Resources AMR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on lululemon athletica inc. LULU, NIKE Inc. NKE and Ralph Lauren Corp. RL.
Here is a synopsis of all five stocks.
There’s a ton of bullishness in the market right now. We are celebrating some major trade deals ahead of the looming August 1st deadline, and the increasing possibility of Fed rate cuts later this year. It’s provided us with a great environment for risk. This has helped broad market averages tick up to all-time highs, with more prosperity on the way.
Today’s Bull of the Day is a stock that directly benefits from a red hot stock market. It’s Zacks Rank #1 (Strong Buy) Robinhood. Robinhood is the popular investment app that’s quietly amassed an eye-popping amount of assets.
Robinhood has turned the corner from being the poster child of retail trading chaos to a legitimate fintech contender. That’s not just hype, it’s backed by the numbers. The company crushed Q1 expectations, reporting 37 cents EPS vs. consensus expectations of just 31 cents. It was the second consecutive quarterly beat for the company.
The growth moving forward looks strong as well. Current year revenue forecasts call for 26.77% growth, with another 19.79% forecast for next year. That’s set to translate to earnings growth of 20% this year and accelerating to 28% next year.
All this has prompted analysts to up the ante for the current year and next year, the reason why the stock enjoys a Zacks Rank #1 (Strong Buy) right now. Over the course of the last month alone, five analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for the current year from $1.22 to $1.31 and next year from $1.42 to $1.68.
There have been a lot of reasons for this growth lately. First, the big resurgence in crypto is helping a ton. With Bitcoin and Ethereum making waves again, Robinhood’s crypto platform is back in demand. They are now even offering staking for Ethereum and Solana. Also, the addition of IRAs has been a huge help, attracting a more stable, long-term customer demographic. That’s sticky money that Robinhood can use to build in the future. The company has also launched in the UK and plans to expand further in Europe. More users, more assets, more revenue.
Just because you’re in a hot industry doesn’t mean your stock is a buy. And just because you used to crush earnings doesn’t mean you will continue doing so. Sometimes, the market sniffs out weakness before the numbers show up, and right now, Alpha Metallurgical Resources is giving off that distinct whiff of vulnerability and it’s why I’m naming it today’s Bear of the Day.
AMR had its moment in the sun. As a metallurgical coal producer riding the coattails of global steel demand, it was a benefactor of the post-pandemic rebuild and the energy squeeze of 2022. But those tailwinds are no longer gusting with the same ferocity. With China’s construction boom in question, steel production leveling off, and global energy normalization underway, AMR is feeling the pressure.
The company, which operates primarily in the Appalachian region, specializes in met coal used for steelmaking, not the dirty stuff used to keep your grandma’s furnace warm. That should give it a more resilient profile, right? In theory. But Wall Street isn’t buying it anymore, and neither are analysts.
What makes AMR today’s Bear of the Day is its Zacks Rank #5 (Strong Sell). That’s the lowest rank we give, reserved for companies facing a flurry of negative earnings estimate revisions. And AMR’s revisions have been downright ugly.
Over the past 90 days, the Zacks Consensus Estimate for the current year has plummeted from $11.75 to a loss of $5.95 per share. Next year is singing a very similar tune, with estimates coming down from $41.59 to $17.65. The company has also missed three consecutive quarters of earnings. They’ve come up 70% short, 128% short, and 81% short over that period.
The bulls will point to the turnaround next year to make their case. If they can deliver, I’ll buy that story, but with three consecutive disappointments and estimates continuing to drop it feels like a risky proposition.
The Mining – Miscellaneous industry is in the Bottom 33% of our Zacks Industry Rank.
Innovation has long been the heartbeat of lululemon athletica inc.’s brand identity. From redefining athleisure with technical fabrics to launching performance-first product lines, the company has consistently blended function, style and science. In fiscal 2025, innovation focus is more crucial than ever, as lululemon aims to navigate a complex retail landscape and reignite growth momentum.
LULU’s growth story in the second half of fiscal 2025 hinges on the strength of its innovation engine, and so far, the signals look promising. Despite macro pressures and cautious U.S. consumer behavior, the athleticwear giant is doubling down on product development, brand activation and international expansion to stay ahead of the curve.
Management highlighted strong guest responses to several launches, including the No Line Align leggings, Daydrift trousers and Glow Up training leggings, many of which sold out quickly and are expected to be expanded across stores in the second half of the year. These items reflect lululemon’s broader push into technical performance gear across yoga, run, train, golf and tennis categories, blending fashion with function to meet lifestyle and athletic needs.
However, tariff headwinds and cost pressures loom large, with first-half fiscal 2025 margins taking a hit. The company plans modest, targeted price increases and supply-chain adjustments to offset these in the second half, expecting mitigation efforts to be more impactful in the back half. With a healthy balance sheet, loyal customer base and compelling new products, lululemon’s innovation pipeline may very well be the spark that powers stronger growth in the latter half of 2025.
As lululemon races ahead with fabric tech breakthroughs and category-blurring product drops, the real test is whether NIKE Inc.’s powerhouse R&D and Ralph Lauren Corp.’s heritage-meets-innovation playbook can keep pace or risk falling behind.
NIKE is entering fiscal 2026 with a sharper, sport-led innovation strategy, reorganizing teams around specific sports and focusing on performance categories like running, training and basketball. Recent launches and athlete-driven campaigns are helping rebuild momentum. However, while NIKE refines its portfolio and recovers from past missteps, lululemon continues to set the pace with focused, high-impact innovation. To keep up, NKE must now match lululemon’s precision and product consistency.
Ralph Lauren is entering fiscal 2026 with a focus on blending timeless style with modern functionality. Its innovation strategy emphasizes elevated materials, localized capsule collections, and tech-enabled experiences to deepen consumer engagement. While lululemon thrives on technical performance and rapid product cycles, Ralph Lauren leans into craftsmanship and lifestyle relevance. The brand’s steady innovation supports premium pricing and global appeal. However, compared with lululemon’s agile model, its pace remains more measured and brand-centric.
lululemon’s shares have lost 41.4% year to date compared with the industry’s decline of 24.2%.
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 14.88X, higher than the industry’s 11.51X.
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 1.1%, whereas the consensus mark for fiscal 2026 suggests growth of 8.3%. Earnings estimates for fiscal 2025 and 2026 have been southbound in the past 30 days.
LULU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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