Many investors are perplexed about what makes stretchy pants, fat-loss drugs, and sports betting so extraordinary. These might not seem like serious financial matters, but they’re stoking some of the hottest mega-trends on Wall Street. No matter how intricate the technology or service, smart investors recognize that these trends drive gains, and gains drive stocks. Below, we showcase three heavy hitters that are reaping the rewards of these trends, setting themselves up technically, surpassing their industry peers, and generating robust earnings:
Athletic Apparel: Lululemon (LULU)
Lululemon has established itself as a beloved athletic apparel and lifestyle brand celebrated for its top-notch yoga and athletic wear. The brand has garnered a massive following by blending a distinctive, minimalist style activewear with functionality and comfort. Although it initially gained attention for its women’s yoga wear, its success in other demographics stems from its emphasis on technical innovation, utilizing performance fabrics and thoughtful design to enhance the overall workout experience. Similar to titans like Apple (AAPL) and Tesla (TSLA), LULU has fostered a strong community through its lifestyle image, nurturing customer loyalty with initiatives like in-store yoga classes and community events.
Weight Loss Drug: Novo Nordisk (NVO)
The traditional American diet has played a significant role in the surge in obesity due to its deleterious combination of processed foods, added sugars, and unhealthy fats. Obesity is linked to an increased risk of severe health conditions, including type 2 diabetes, heart disease, hypertension, and cancer. Despite ample information on the matter, few Americans take precautions, and instead opt for calorie-dense foods due to convenience or lack of discipline.
For years, people have yearned for an effective fat-loss drug. Novo Nordisk has turned that dream into a reality with its blockbuster drug Ozempic. The logic is straightforward: NVO benefits from the mega-trend of obesity. As levels of obesity continue to soar, Ozempic will prosper. Analysts predict NVO will pull in a staggering $38 billion in revenue next year.
Sports Betting: DraftKings (DKNG)
DraftKings stands as the leading American sports gambling platform. The DKNG platform enables users to engage in daily and weekly fantasy sports contests across various professional sports. Beyond fantasy sports, DraftKings has broadened its offerings to include traditional sports betting in regions where it is legal.
DKNG’s fundamentals make it abundantly clear that more and more Americans find enjoyment in betting on games rather than just watching them. Moreover, DKNG is the undisputed leader in the industry due to legal approval in more states than any of its rivals. After surpassing Zacks Consensus Estimates last quarter, future estimates indicate healthy, robust, and sustained growth in the following quarters.