Last Friday, shares of Kenvue (KVUE) traded to 52-week lows on unsubstantiated rumors. Sources reported that a report from the HHS will link Tylenol, a painkiller, used during pregnancy is linked to autism development in children.
The report speculates that a lack of folate (vitamin B9) is a contributor to autism.
Investors may want to wait for the release of the report. Before scientists debunk its claims, investors may take advantage of KVUE stock trading at a discount. Shares trade at a P/E of 25 times and a forward P/E of 16.4 times.
In the retail sector, Lululemon (LULU) traded down by nearly 20% on Sept. 5. The firm warned that its product life cycle is running too long in several core categories. As a result, the firm is missing critical opportunities to create new trends. Also, the company is observing shifts in the industry.
Lululemon said that the premium athletic wear, which is a source for high profit margins, remains challenging in the U.S. It continued to worsen in the second quarter.
The company has three areas that benefit from its product pipeline. It may boost sales by introducing new styles, using lounge and social media for advertising. Loungeful and Big Cozy are two new items that the company will introduce in the second half of this year.
