Roku and Texas Roadhouse have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – November 18, 2025 – Zacks Equity Research shares Roku ROKU as the Bull of the Day and Texas Roadhouse TXRH as the Bear of the Day. In addition, Zacks Equity Research provides analysis on lululemon athletica Inc. LULU, Ralph Lauren Corp. RL and Guess?, Inc. GES.

Here is a synopsis of all five stocks.

Bull of the Day:

Roku helped pioneer streaming. Its TVs, Roku TV models, Roku streaming players, and TV-related audio devices are available worldwide through direct retail sales and/or licensing arrangements with TV OEM brands.

The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS expectations moving bullishly across the board.

Let’s take a closer look at what’s been driving the positivity.

Roku Shares Outperform

Roku posted a double-beat concerning our headline expectations in its latest quarterly release, with adjusted EPS tripling alongside a 14% sales increase. Importantly, the company posted positive operating income for the first time since 2021.

Advertising efforts and subscription growth led to the strong quarter, with the company raising its fiscal year guidance following the print. The current year sales outlook has remained positive following the guide higher.

The positive release helped move shares higher post-earnings, up 30% on a YTD basis and outperforming relative to the S&P 500 by a fair margin. Big growth is expected, with current year consensus expectations alluding to 140% adjusted EPS growth on 14% higher sales.

Bottom Line

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The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Roku would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).

Bear of the Day:

Texas Roadhouse is a full-service, casual dining restaurant chain that offers a variety of food and steaks, which are hand-cut daily on the premises and cooked to order over open gas-fired grills.

Analysts have taken a bearish stance on the company’s EPS outlook, landing it into a Zacks Rank #5 (Strong Sell).

What’s going on? Let’s take a closer look.

TXRH Faces Commodity Inflation

TXRH’s quarterly releases have largely been mixed concerning headline results, with the company regularly beating our consensus EPS estimate but falling short of sales expectations.

Adjusted EPS fell -0.8% YoY throughout the latest period, with sales up 13%. Notably, comparable restaurant sales were up a strong 6.1%, with average weekly sales at restaurants also improving from the year-ago period.

Still, the real thorn in TXRH's side has been commodity inflation, with the company updating its commodity inflation guidance to roughly 6% post-earnings vs. the 5.2% forecast in its Q2 release.

Jerry Morgan, CEO, said –

‘Our operators continued to drive strong traffic this quarter, which helped offset the impact of continued commodity inflation. While the duration of these inflationary pressures remains uncertain, we are committed to running our business with a long-term focus and maintaining our value proposition.’

Bottom Line

Negative earnings estimate revisions, stemming from a challenging operating environment, paint a challenging picture for the company’s shares in the near term.

Texas Roadhouse is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.

Additional content:

LULU Eyes Asia for Business Expansion: Will It Move the Needle?

Asia has become a central pillar in lululemon athletica Inc.’s long-term growth ambitions, with the region representing one of the brand’s strongest opportunities for market share gains and guest acquisition. Management emphasized that international momentum, particularly in China, continues to outpace North America, where the business is undergoing a product and assortment reset.

China, as lululemon’s second-largest market, remains critical to its global diversification strategy and brand elevation efforts. The company sees significant headroom to grow unaided awareness, expand its loyal guest base and strengthen its high-performance positioning across emerging Asian markets.

In the second quarter of fiscal 2025, lululemon delivered standout results in Asia despite macro-driven softness in certain Tier 1 Chinese cities. China Mainland revenues rose 25% (24% in constant currency), with meaningful comparable sales growth supported by new store openings, local activations and growing brand engagement. The Rest of World segment, driven largely by Asia-Pacific markets, also posted 19% growth (15% in constant currency).

These results underline the region’s resilience relative to the more challenged U.S. business, where casual and lounge categories are experiencing product fatigue. Asia continues to benefit from newer brand adoption curves, a healthier consumer appetite for performance wear, and rising demand across yoga, run, and training categories.

Looking ahead, lululemon is doubling down on Asia expansion with plans to open additional stores in China and enter India through a new franchise partner in 2026. For fiscal 2025, lululemon reiterated its guidance of 40-45 net new company-operated stores, including 15 stores in the Americas, with nearly half of this planned for Mexico. The rest of the store openings in fiscal 2025 are expected to occur in the international markets, primarily in China.

Management expects Asia to remain a key growth engine, supported by strong international momentum and its updated fiscal 2025 revenue outlook of 20–25% growth in Mainland China and 20% growth in the Rest of the World. With a refreshed product pipeline arriving in fiscal 2026, the company believes Asia will play a pivotal role in reaccelerating global performance and stabilizing overall results.

How LULU’s Competitors – RL & GES – Rely on Asia Growth?

As lululemon expands its Asian footprint, rivals Ralph Lauren Corp. and Guess?, Inc. are also counting on Asia’s rising consumer demand to drive their next leg of growth.

Ralph Lauren is intensifying its focus on Asia, where the brand continues to post some of its strongest growth, supported by rising consumer engagement and expanding digital reach. Asia delivered robust double-digit gains in the last reported quarter, led by exceptional strength in China and steady momentum in Japan. With new stores, deeper market penetration and an accelerating digital ecosystem, RL’s Asia strategy is positioned to be a key driver of long-term growth.

Guess is sharpening its focus on Asia as a key pillar of long-term growth, leveraging rising brand demand and expanding distribution across major markets. The company is deepening its regional footprint through new stores, strengthened wholesale partnerships and enhanced product localization. As consumer engagement accelerates and international momentum outpaces North America, Guess expects Asia to play an increasingly important role in driving sustainable revenue and profitability gains.

The Zacks Rundown for LULU

lululemon’s shares have lost 55.4% year to date compared with the industry’s decline of 18.9%.

From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.11X, lower than the industry’s 15.79X.

The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 11.8%, whereas the consensus mark for fiscal 2026 suggests growth of 1.1%. Earnings estimates for fiscal 2025 have been southbound in the past 30 days. LULU currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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