Costco, Lululemon stand out as S&P 500 nears 52-week high
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The S&P 500 (^GSPC) is approaching an all-time high as December's Santa Claus rally saunters on, with several stocks hitting 52-week highs. Notable among these are Costco (COST), Chipotle (CMG), and Lululemon (LULU).
Yahoo Finance’s Brian Sozzi and Brad Smith use the new Yahoo Finance Compare tool to get insight into the price ratios of these companies. Lululemon, in particular, is highlighted for its position in the athleisure market and its performance in the men's footwear category.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
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BRIAN SOZZI: An all time high is firmly in sight for the S&P 500 as the Santa Claus rally rolls on to close out this year. Let's take a beat. Brad and I look at some stocks that are currently at 52 week highs as we speak. One of my all time favorites, Costco, formerly company of the year. We've got Chipotle on here and Lululemon.
And, Brad, we at Yahoo Finance just launched a new tool for the Yahoo Finance Committee. It's called Yahoo Finance Compare. And I'm on this compare page right now on our home page. And I'm looking at the price ratio section. And you really ultimately inspired this for me because you were talking about PE ratios earlier in the show. The PE ratio on Lululemon, 36 times 4. That is Costco 43 times, Chipotle 43 times.
And we're talking about markets at record highs. And this is reflected in some of these companies. So that is first and foremost. Secondarily, all three of those companies are some of the fundamentally strongest consumer oriented names in the entire market. And as we have learned, the consumer has continued to surprise to the upside. That means packed stores at Lululemon, pack stores at Costco, and packed restaurants at Chipotle, and all three of these companies have the financials for the past six months to back up where the stocks are trading now.
BRAD SMITH: I think one of the larger questions too because you're looking at three very different companies and where they can fit on the consumer spending spectrum. Lululemon still looked at it as very much a high value and one of the more costly parts of the athleisure, athletic apparel and also footwear. And one of the next catalysts perhaps that investors are going to need to look to is how well they do in men's footwear and an expansion in men's footwear coming off of what they've already done in launching women's. We were just talking about the slides. The slides was the first entry into men's footwear.