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Dollar General and Banco De Chile have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 29, 2026 – Zacks Equity Research shares Dollar General (DG - Free Report) , as the Bull of the Day and Banco De Chile (BCH - Free Report) . as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —lululemon athletica inc.’s (LULU - Free Report) , Ralph Lauren Corp. (RL - Free Report) and Under Armour Inc. (UAA - Free Report) .
When the market gets a little wobbly, investors have a habit of rediscovering an old truth: value never goes out of style. That’s exactly where today’s Bull of the Day shines. In an environment where consumers are still watching every dollar, it sits in the sweet spot of selling everyday necessities at prices that make stretched budgets breathe a little easier.
I’m talking about Zacks Rank #1 (Strong Buy)Dollar General.Dollar General operates more than 20,000 stores across the U.S., with a heavy footprint in rural and underserved areas. That scale matters. It gives the company pricing power, distribution efficiency, and a captive customer base that isn’t suddenly trading down from Dollar General to somewhere cheaper, because there really isn’t anywhere cheaper. When inflation pinches, DG doesn’t get hurt; it gets busier.
What really puts Dollar General in Bull of the Day territory, though, is the earnings picture. Analysts have been nudging estimates higher, reflecting improving margins, better inventory discipline, and early signs that traffic trends are stabilizing. The company has been investing heavily in private-label brands, supply chain upgrades, and store remodels under its DG Fresh and other initiatives. Those investments weighed on results in the past, but they’re starting to look more like seeds that are about to sprout.
Analysts have taken notice, with 22 analysts increasing their estimates for both the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from $6.14 to $6.49 while next year’s number is up from $6.68 to $7.08.
That puts current year growth estimates at 9.6% with next year coming in at 9.1%. That’s on revenue growth of 4.79% this year and 4.06% next year.
Those bullish moves are a big reason why the stock has been on fire since mid-November. Back then, shares were down under $100. Since then, shares have surged nearly 50% to $145.04.
When global markets get selective, foreign financials are often the first place investors start trimming exposure. You get that double-edged sword of equity risk and currency risk. Risk-off typically means dollar strength, which is no good for foreign stocks. Today’s Bear of the Day has avoided these pitfalls for now. However, the near-term setup is far less compelling than it looks on the surface.
Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) Banco De Chile. Banco De Chile, as the name implies, is principally engaged in commercial banking in Chile. Banco de Chile is not a small or fringe institution. It is one of the cornerstones of the Chilean banking system, with a history stretching back to 1893. The bank operates as a full-service financial institution, offering commercial banking, retail banking, corporate lending, wealth management, and treasury services. In terms of domestic relevance, this is about as “too important to ignore” as it gets in Chile.
The core issue is earnings momentum. Analyst estimate revisions have been drifting lower, reflecting pressure from slowing loan growth, tighter financial conditions, and a less forgiving macro backdrop in Chile. The country has been grappling with uneven economic growth, sticky inflation, and policy uncertainty, all of which tend to show up quickly on bank balance sheets. Net interest margins are no longer expanding the way they did when rates were moving higher, and credit costs are starting to creep back into the conversation.
While the stock has surged higher, earnings have taken a breather. Analysts have cut their earnings estimates for both the current year and next year over the course of the last month. The bearish moves have dropped our Zacks Consensus Estimates from $2.56 to $2.54 for the current year, while next year’s number is off from $2.81 to $2.73.
The Banks – Foreign industry is in the Top 16% of our Zacks Industry Rank. As such, there are other names within the industry that are in the good graces of our Zacks Industry Rank.
Additional content:
Can LULU's Premium Apparel Survive Weak U.S. Traffic Trends?
lululemon athletica inc.’s business model is built around premium apparel positioning, anchored in technical innovation, brand loyalty and full-price selling. The company continues to lead with performance-driven product categories, such as run, train and outerwear, where management cited strong guest response in the third quarter of fiscal 2025.
The company’s ability to command premium pricing is reinforced by its differentiated product pipeline, disciplined markdown strategy and a loyal, high-value customer base, supported by membership programs and brand-led storytelling. This positioning has enabled lululemon to remain the leading women’s activewear brand in the United States while scaling internationally.
However, this premium model is facing pressure from weakening U.S. traffic trends. In third-quarter fiscal 2025, Americas revenues declined 2% year over year, with U.S. sales down 3% and comparable sales falling 5%. Management attributed the softness to reduced visit frequency, increased promotional intensity across the apparel space and signs of consumer trade-down behavior amid a value-seeking environment.
The impact is visible in margin pressure, as higher markdowns and tariff-related costs weighed on profitability. While lululemon continues to attract guests, slower engagement from its core U.S. customer base has tempered near-term growth expectations.
Management is executing a three-pillar action plan focused on refreshing product assortments, elevating in-store and digital experiences and improving enterprise efficiency, with benefits expected to materialize in fiscal 2026. Coupled with robust international momentum, especially in China, lululemon’s premium positioning appears durable, though the U.S. recovery remains the key swing factor for sustained growth.
lululemon is not alone in facing softness in U.S. retail traffic. Its peers, such as Ralph Lauren Corp. and Under Armour Inc., with premium-oriented apparel, are grappling with similar headwinds, though with different strategic responses.
Ralph Lauren is navigating weak traffic trends by leaning into brand elevation and disciplined execution. In second-quarter fiscal 2026, management highlighted continued focus on full-price selling, higher average unit retail and reduced promotions, helping offset softer store traffic. Strength in international markets and digital channels further supported the results, while tighter inventory control and selective pricing actions preserved margins despite a cautious consumer backdrop.
Under Armour is responding to weak traffic trends by accelerating its multi-year reset focused on simplifying the business and sharpening brand positioning. In second-quarter fiscal 2026, management emphasized reduced promotional dependence, tighter inventory controls and SKU rationalization to improve sell-through amid softer U.S. demand. The company is also shifting toward premium performance products and a more balanced DTC-wholesale mix, while prioritizing profitability over near-term traffic recovery.
LULU’s Price Performance, Valuation & Estimates
Shares of lululemon have gained 9.4% in the past three months compared with the industry’s growth of 6.4%.
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 15.1X compared with the industry’s average of 16.3X.
The Zacks Consensus Estimate for LULU’s fiscal 2025 and fiscal 2026 earnings implies a year-over-year decline of 10.8% and 2.3%, respectively. The company’s EPS estimate for fiscal 2025 has been northbound in the past seven days, while the estimate for fiscal 2026 has been southbound in the same period.
lululemon currently carries a Zacks Rank #3 (Hold).
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Dollar General and Banco De Chile have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 29, 2026 – Zacks Equity Research shares Dollar General (DG - Free Report) , as the Bull of the Day and Banco De Chile (BCH - Free Report) . as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —lululemon athletica inc.’s (LULU - Free Report) , Ralph Lauren Corp. (RL - Free Report) and Under Armour Inc. (UAA - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
When the market gets a little wobbly, investors have a habit of rediscovering an old truth: value never goes out of style. That’s exactly where today’s Bull of the Day shines. In an environment where consumers are still watching every dollar, it sits in the sweet spot of selling everyday necessities at prices that make stretched budgets breathe a little easier.
I’m talking about Zacks Rank #1 (Strong Buy)Dollar General.Dollar General operates more than 20,000 stores across the U.S., with a heavy footprint in rural and underserved areas. That scale matters. It gives the company pricing power, distribution efficiency, and a captive customer base that isn’t suddenly trading down from Dollar General to somewhere cheaper, because there really isn’t anywhere cheaper. When inflation pinches, DG doesn’t get hurt; it gets busier.
What really puts Dollar General in Bull of the Day territory, though, is the earnings picture. Analysts have been nudging estimates higher, reflecting improving margins, better inventory discipline, and early signs that traffic trends are stabilizing. The company has been investing heavily in private-label brands, supply chain upgrades, and store remodels under its DG Fresh and other initiatives. Those investments weighed on results in the past, but they’re starting to look more like seeds that are about to sprout.
Dollar General Corporation price-consensus-chart | Dollar General Corporation Quote
Analysts have taken notice, with 22 analysts increasing their estimates for both the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from $6.14 to $6.49 while next year’s number is up from $6.68 to $7.08.
That puts current year growth estimates at 9.6% with next year coming in at 9.1%. That’s on revenue growth of 4.79% this year and 4.06% next year.
Those bullish moves are a big reason why the stock has been on fire since mid-November. Back then, shares were down under $100. Since then, shares have surged nearly 50% to $145.04.
Bear of the Day:
When global markets get selective, foreign financials are often the first place investors start trimming exposure. You get that double-edged sword of equity risk and currency risk. Risk-off typically means dollar strength, which is no good for foreign stocks. Today’s Bear of the Day has avoided these pitfalls for now. However, the near-term setup is far less compelling than it looks on the surface.
Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) Banco De Chile. Banco De Chile, as the name implies, is principally engaged in commercial banking in Chile. Banco de Chile is not a small or fringe institution. It is one of the cornerstones of the Chilean banking system, with a history stretching back to 1893. The bank operates as a full-service financial institution, offering commercial banking, retail banking, corporate lending, wealth management, and treasury services. In terms of domestic relevance, this is about as “too important to ignore” as it gets in Chile.
The core issue is earnings momentum. Analyst estimate revisions have been drifting lower, reflecting pressure from slowing loan growth, tighter financial conditions, and a less forgiving macro backdrop in Chile. The country has been grappling with uneven economic growth, sticky inflation, and policy uncertainty, all of which tend to show up quickly on bank balance sheets. Net interest margins are no longer expanding the way they did when rates were moving higher, and credit costs are starting to creep back into the conversation.
Banco De Chile price-consensus-chart | Banco De Chile Quote
While the stock has surged higher, earnings have taken a breather. Analysts have cut their earnings estimates for both the current year and next year over the course of the last month. The bearish moves have dropped our Zacks Consensus Estimates from $2.56 to $2.54 for the current year, while next year’s number is off from $2.81 to $2.73.
The Banks – Foreign industry is in the Top 16% of our Zacks Industry Rank. As such, there are other names within the industry that are in the good graces of our Zacks Industry Rank.
Additional content:
Can LULU's Premium Apparel Survive Weak U.S. Traffic Trends?
lululemon athletica inc.’s business model is built around premium apparel positioning, anchored in technical innovation, brand loyalty and full-price selling. The company continues to lead with performance-driven product categories, such as run, train and outerwear, where management cited strong guest response in the third quarter of fiscal 2025.
The company’s ability to command premium pricing is reinforced by its differentiated product pipeline, disciplined markdown strategy and a loyal, high-value customer base, supported by membership programs and brand-led storytelling. This positioning has enabled lululemon to remain the leading women’s activewear brand in the United States while scaling internationally.
However, this premium model is facing pressure from weakening U.S. traffic trends. In third-quarter fiscal 2025, Americas revenues declined 2% year over year, with U.S. sales down 3% and comparable sales falling 5%. Management attributed the softness to reduced visit frequency, increased promotional intensity across the apparel space and signs of consumer trade-down behavior amid a value-seeking environment.
The impact is visible in margin pressure, as higher markdowns and tariff-related costs weighed on profitability. While lululemon continues to attract guests, slower engagement from its core U.S. customer base has tempered near-term growth expectations.
Management is executing a three-pillar action plan focused on refreshing product assortments, elevating in-store and digital experiences and improving enterprise efficiency, with benefits expected to materialize in fiscal 2026. Coupled with robust international momentum, especially in China, lululemon’s premium positioning appears durable, though the U.S. recovery remains the key swing factor for sustained growth.
Peers Under Pressure: RL & UAA Navigate Weak Traffic Trends Too?
lululemon is not alone in facing softness in U.S. retail traffic. Its peers, such as Ralph Lauren Corp. and Under Armour Inc., with premium-oriented apparel, are grappling with similar headwinds, though with different strategic responses.
Ralph Lauren is navigating weak traffic trends by leaning into brand elevation and disciplined execution. In second-quarter fiscal 2026, management highlighted continued focus on full-price selling, higher average unit retail and reduced promotions, helping offset softer store traffic. Strength in international markets and digital channels further supported the results, while tighter inventory control and selective pricing actions preserved margins despite a cautious consumer backdrop.
Under Armour is responding to weak traffic trends by accelerating its multi-year reset focused on simplifying the business and sharpening brand positioning. In second-quarter fiscal 2026, management emphasized reduced promotional dependence, tighter inventory controls and SKU rationalization to improve sell-through amid softer U.S. demand. The company is also shifting toward premium performance products and a more balanced DTC-wholesale mix, while prioritizing profitability over near-term traffic recovery.
LULU’s Price Performance, Valuation & Estimates
Shares of lululemon have gained 9.4% in the past three months compared with the industry’s growth of 6.4%.
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 15.1X compared with the industry’s average of 16.3X.
The Zacks Consensus Estimate for LULU’s fiscal 2025 and fiscal 2026 earnings implies a year-over-year decline of 10.8% and 2.3%, respectively. The company’s EPS estimate for fiscal 2025 has been northbound in the past seven days, while the estimate for fiscal 2026 has been southbound in the same period.
lululemon currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.