5 Best Weight Loss Stocks to Buy Now

4. Lululemon Athletica (NASDAQ:LULU)

Hedge Fund Holdings: 50

Based in Vancouver, Lululemon Athletica (NASDAQ:LULU) is a Canadian multinational athletic apparel retailer which sells athletic wear particularly for weight loss and cardio exercises like yoga, running, and Pilates. On October 13, Raymond James analyst Rick Patel began coverage of Lululemon Athletica (NASDAQ:LULU) with a Strong Buy rating and a $345 price target. Although the stock is down 25.49% year-to-date, the analyst remains confident about the long-term prospects of the stock. The analyst is bullish on Lululemon Athletica (NASDAQ:LULU) for three primary reasons: The Power of Three Growth Strategy and a strong and established business model; industry leading financials and comp sales; and a massive share buyback program. Furthermore, the company has cultivated a strong and expansive customer base, which is inclined to pay premium cost for the company’s top-of-the-line product line. This will help the company navigate through the current macroeconomic headwinds, making it one of the best weight loss stocks to buy.

In  Q2 2022,  the company generated a revenue of $1.87 billion, a 29% increase with respect to Q2 2021. Comparable sales have skyrocketed by 25% as store traffic exceeds pre-pandemic levels of footfall. Moreover, hedge fund sentiment around Lululemon Athletica (NASDAQ:LULU) has improved, with 50 hedge funds long the stock in Q2 2022, up from 44 funds in Q1 2022.