In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other, and you, the reader, will determine the winner.
Annaly Capital Management takes on lululemon athletica for this first round-robin match up in our search for the better stock today.
Financials analyst David Hanson believes the No. 1 reason Annaly Capital Management (NYSE:NLY) should win this match is the company's dirt-cheap valuation. Shares of Annaly have rarely been this cheap in the company's very successful history, and management's recent push into the commercial real estate space should allow its portfolio to achieve higher yields without much additional leverage. The ride isn't likely to be smooth, but long-term investors can collect hefty dividends along the way as the company finds better-yielding opportunities.
Consumer-goods analyst Sean O'Reilly makes the case for lululemon athletica (NASDAQ:LULU) in this matchup. He believes Lululemon's problems, which have included increased competition for its yoga-apparel and management issues, are all in the past. With its new CEO, Laurent Potdevin, at the helm, Lululemon is primed to continue its growth trajectory in the years ahead.
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Vote here to determine the winner of this match, and sound off in the comments. Check back to Fool.com to see who advances in the tournament.
David Hanson owns shares of Annaly Capital Management. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.