Abercrombie & Fitch is one of the strongest Stage 2 names outside the AI trade, a rare mix of price action, earnings and valuation. It made a power earnings gap on nearly 10x average volume after a long base, and trades at 12x forward earnings with a $6.5B market cap. x.com 

Abercrombie & Fitch can define what is cool, while Lululemon is a category leader that would have to change its identity to adapt. Abercrombie executed its e-commerce pivot, cut lower-tier mall exposure and de-emphasized logos, freeing it to be more creative. Fashion retail remains tough, with inventory planned 6-9 months out and price-sensitive consumers, but it trades at 7x earnings, buys back 12% of shares a year and holds $14 a share in cash on a $77 stock. x.com  x.com  x.com 

Lululemon trading at about 7x earnings is absurdly cheap, among the most mispriced stocks around. x.com