{"id":2746,"date":"2025-12-07T17:04:48","date_gmt":"2025-12-07T17:04:48","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/1-stock-to-buy-1-stock-to-sell-this-week-broadcom-lululemon\/"},"modified":"2025-12-07T17:04:48","modified_gmt":"2025-12-07T17:04:48","slug":"1-stock-to-buy-1-stock-to-sell-this-week-broadcom-lululemon","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/1-stock-to-buy-1-stock-to-sell-this-week-broadcom-lululemon\/","title":{"rendered":"1 Stock to Buy, 1 Stock to Sell This Week: Broadcom, Lululemon"},"content":{"rendered":"<div>\n<ul type=\"disc\">\n<li>Fed rate cut, FOMC dot-plot, Powell news conference, and labor market data will be in focus this week.<\/li>\n<li>Broadcom is well-positioned to deliver earnings results that significantly exceed consensus estimates while providing optimistic guidance.<\/li>\n<li>Lululemon is expected to deliver mixed-to-weak results, reflecting slowing U.S. demand and macroeconomic pressures.<\/li>\n<li><strong>Looking for more actionable trade ideas?<\/strong> <strong>Subscribe now to unlock access to InvestingPro\u2019s AI-selected stock winners and save 55%!<\/strong><\/li>\n<\/ul>\n<p>Wall Street\u2019s main indexes ended mostly higher on Friday, with the S&amp;P 500 securing its fourth straight winning day as traders digested inflation data that could provide further incentive for the Federal Reserve to cut interest rates next week.<\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>For the week, the S&amp;P benchmark 500 gained 0.3%, the tech-heavy  rose 0.9%, and the 30-stock  added 0.5%. The small-cap  climbed 0.8%.<\/p>\n<p>The blockbuster week ahead is expected to be a busy one filled with several market-moving events, including a key Fed policy meeting. The U.S. central bank is widely expected to lower interest rates by 25 basis points on Wednesday. Along with its policy update, the FOMC will release new dot-plot projections for interest rates, unemployment and inflation for 2026. Post-meeting comments by Fed Chair Jerome Powell, whose term ends in May, could also move markets.<img decoding=\"async\" title=\"Weekly Economic Events\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/906d37c476d48c82ecf30365c13b4113.png\" alt=\"Weekly Economic Events\" width=\"\" height=\"\"\/><\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>There will also be some noteworthy labor data due in the week ahead. The JOLTS Job Openings Survey drops on Tuesday, while the latest weekly jobless claims numbers are set for Thursday.<\/p>\n<p>And while the earnings season is all but over, a few notable companies will report in the coming week. These include AI plays  and Oracle, as well as retailers Costco Wholesale, GameStop, and .<\/p>\n<p>Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is <em>just<\/em> for the week ahead, Monday, December 8 &#8211; Friday, Dec. 12.<\/p>\n<h2><strong>Stock To Buy: Broadcom<\/strong><\/h2>\n<p><span itemscope=\"\" itemtype=\"http:\/\/schema.org\/Corporation\"><span itemprop=\"name\">Broadcom<\/span><\/span>, a key player in the AI semiconductor space, emerges as the compelling buy opportunity, with multiple growth drivers converging to support what is expected to be a robust earnings report and strong guidance.<\/p>\n<p>The company\u2019s fiscal Q4 update is scheduled to come out on Thursday at 4:15PM ET. Market participants expect a sizable swing in AVGO shares following the print, with options markets pricing in a potential $30 move, or roughly +\/-8%, in either direction post-earnings.<\/p>\n<p>Analysts have shown optimism through multiple upward revisions to EPS estimates\u201427 upward adjustments versus just three downward in recent months\u2014setting the stage for what could be another record quarter. Recent analyst upgrades, including Jefferies\u2019 new $480 price target and Mizuho\u2019s bullish AI revenue projections, add fuel to the fire.<img decoding=\"async\" title=\"Broadcom Earnings Page\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/ea585b5e27b18954ad27c0bb7d6deb8e.png\" alt=\"Broadcom Earnings Page\" width=\"\" height=\"\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Broadcom is seen earning $1.87 per share, representing a 31.7% increase from the prior year and marking another quarter of accelerating profitability. Meanwhile, revenue is forecast to jump 24.2% year-over-year to $17.45 billion, fueled by robust AI demand.<\/p>\n<p>The company\u2019s AI chip partnership with Google\u2014highlighted by the recent Gemini 3 launch\u2014has cemented Broadcom\u2019s status as a linchpin in the AI supply chain.<\/p>\n<p>Analysts anticipate upbeat guidance, reinforcing the stock\u2019s leadership in AI and enterprise software. Broadcom\u2019s application-specific integrated circuits and networking switches have become indispensable components for AI training and inference workloads, creating customer dependency that supports premium pricing and long-term contract visibility.<img decoding=\"async\" title=\"Broadcom Chart\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/94d97d3af3428713c1ab6d425e1662e7.png\" alt=\"Broadcom Chart\" width=\"\" height=\"\"\/><\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>AVGO stock ended Friday\u2019s session at $390.24, just below its record high of $403. Broadcom\u2019s technicals are as bullish as they come. Every major indicator\u2014across all timeframes from minutes to weeks\u2014signals a &#8220;strong buy.&#8221; The 1-hour chart is especially robust: RSI at 60.2 (bullish but not overbought), MACD positive, and all moving averages (simple and exponential) in buy territory.<\/p>\n<p>InvestingPro\u2019s AI-powered quantitative model rates Broadcom with a \u2018GREAT\u2019 Financial Health Score of 3.13, reflecting strong profit and sales growth, high gross margins, and a long-standing record of rising dividends (15 consecutive years).<\/p>\n<p>Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. <strong>Subscribe now for up 55% off as part of our Extended Cyber Week sale!<\/strong><\/p>\n<h2><strong>Stock to Sell: Lululemon<\/strong><\/h2>\n<p>Lululemon, once a darling of the athleisure market, faces a challenging setup heading into its Q3 fiscal 2025 earnings, with expectations pointing toward a potential miss and subdued forward guidance amid rising competition, tariff impacts, and softening consumer demand.<\/p>\n<p>The yoga wear retailer\u2014known for its $128 leggings and $68 workout tanks\u2014is slated to release its latest financial results at 4:05PM ET on Thursday. With implied volatility pointing to a massive +\/-12% stock move post-earnings, the risk of a miss looms large.<\/p>\n<p>Analyst sentiment is overwhelmingly bearish with 22 downward revisions and no upward adjustments in the weeks preceding the report, amid a slowdown in U.S. consumer spending on discretionary items like yoga gear and sportswear.<img decoding=\"async\" title=\"Lululemon Earnings Page\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/1d8e18693a10ae2b3b4496450f9826af.png\" alt=\"Lululemon Earnings Page\" width=\"\" height=\"\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Wall Street sees Lululemon reporting adjusted earnings of $2.21 per share, declining 23% from a year earlier. Revenue growth is forecast at only 3.3%, as intensified competition from other activewear brands, like , <span itemscope=\"\" itemtype=\"http:\/\/schema.org\/Corporation\"><span itemprop=\"name\">Adidas<\/span><\/span>, and Alo Yoga, as well as low-cost players, such as Shein and Temu, erodes the company\u2019s once-untouchable market position in the lucrative athleisure segment.<\/p>\n<p>Lululemon\u2019s recent performance metrics suggest fundamental demand weakness rather than temporary market disruption, with same-store sales growth decelerating and customer traffic patterns indicating reduced engagement with the brand.<\/p>\n<p>Management\u2019s recent commentary about promotional activity and inventory clearance suggests margin pressure that could persist into the critical holiday quarter as the company attempts to maintain market share in an increasingly competitive environment.<img decoding=\"async\" title=\"Lululemon Chart\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/686112b039fb1cafb3654c1e86a66da5.png\" alt=\"Lululemon Chart\" width=\"\" height=\"\"\/><\/p>\n<p><em>Source: Investing.com<\/em><\/p>\n<p>LULU stock closed at $190.01 on Friday. Despite a recent 1-month rally of roughly 14%, technicals show a split personality: while the 1-hour chart leans bullish, longer-term and monthly signals remain bearish or neutral, highlighting a fragile recovery.<\/p>\n<p>As per InvestingPro research, recent analyst commentary paints a picture of declining momentum: Jeffries reiterated its Underperform rating and cut its price target to $120, warning of shrinking margins and pricing pressures.<\/p>\n<p>Whether you\u2019re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.<\/p>\n<p><strong>Subscribe now<\/strong><strong> for 55% off the final price and instantly unlock access to several market-beating features, including:<\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>ProPicks AI:<\/strong> AI-selected stock winners with proven track record.<\/li>\n<li><strong>InvestingPro Fair Value: <\/strong>Instantly find out if a stock is underpriced or overvalued.<\/li>\n<li><strong>Advanced Stock Screener:<\/strong> Search for the best stocks based on hundreds of selected filters, and criteria.<\/li>\n<li><strong>Top Ideas:<\/strong> See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying.<\/li>\n<\/ul>\n<p><img decoding=\"async\" title=\"Cyber Week Sale: 55% OFF!\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/ebb77cb307bd75d7ff8c8b25d5a165c2.jpeg\" alt=\"Cyber Week Sale: 55% OFF!\" width=\"\" height=\"\"\/><\/p>\n<p><strong><em>Disclosure: <\/em><\/strong><strong><em>This is not financial advice. Always conduct your own research.<\/em><\/strong><\/p>\n<p><em>At the time of writing, I am long on the S&amp;P 500, and the Nasdaq 100 via the SPDR\u00ae S&amp;P 500 ETF, and the  ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies\u2019 financials.<\/em><\/p>\n<p><em>The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.<\/em><\/p>\n<p><em>Follow Jesse Cohen on X\/Twitter <\/em><a href=\"https:\/\/twitter.com\/JesseCohenInv\" target=\"_blank\" rel=\"nofollow noopener\"><em>@JesseCohenInv<\/em><\/a><em> for more stock market analysis and insight.<\/em><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script id=\"fb_pixel\" data-nscript=\"beforeInteractive\">!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fed rate cut, FOMC dot-plot, Powell news conference, and labor market data will be in focus this week. Broadcom is well-positioned to deliver earnings results that significantly exceed consensus estimates while providing optimistic guidance. Lululemon is expected to deliver mixed-to-weak results, reflecting slowing U.S. demand and macroeconomic pressures. Looking for more actionable trade ideas? Subscribe [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1912,228,775,292,229,293],"class_list":["post-2746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-broadcom","tag-buy","tag-lululemon","tag-sell","tag-stock","tag-week"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/2746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=2746"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/2746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/2747"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=2746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=2746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=2746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}