And this dip is a perfect opportunity to get in on the action... [Derby City Daily logo](
[Derby City Daily logo]( August 28, 2024 [800% in Two Years: This Apparel Stock Is Beating NVDAâs Gains]( By Andy Swan All eyes are on Nvidia (NVDA) today â and for good reason. The $3 trillion AI superstar is the S&P 500âs top performer this year, gaining 150% ahead of todayâs highly anticipated earnings report. Weâre tuned in to NVDA with the rest of the market. [Earnings Season Pass]( subscribers have our recommended earnings trade in hand. But over the last two years, one surprising stock has even outperformed NVDA. Take a look at the chart below to see what Iâm talking about... The black line is NVDA. As of this writing, the GOAT in AI tech has delivered a nearly 700% gain since 2022. Now, pay attention to that BLUE line. It represents a teen fashion retailer whose stock is up more than 800% in the same time frame: Abercrombie & Fitch (ANF). SPONSORED AD [ALERT: The âAlternativeâ AI Stock Set to Crush Nvidia in September?]( TradeSmith analyst Jason Bodner recommended Nvidia in February of 2017. The stock has since soared 4,000%. He then recommended another AI stock in 2023. It has outperformed Nvidia by 460% since Jasonâs recommendation. But now, heâs revealing the name and ticker for his next AI stock pick. Itâs an off-the-radar stock thatâs just 1% the size of Nvidia right now. Yet he believes itâs set to power the whole world economy with AI. And it could crush all other AI stocks starting in September. Jason has agreed to reveal his new AI pick for free. For full details â down to the ticker symbol â go [here]( and check out his latest video bulletin. [Click here](
ANFâs Comeback of the Century Over the last decade, Abercrombie has transformed its brand image and financial performance dramatically, outpacing its competitors with remarkable vigor. ANF hit a rough patch in the early 2000s due to controversial marketing and a disconnect with evolving consumer values. This was back in the days when going to the mall was still the thing â I can still smell the spicy scent of Abercrombie cologne wafting out of those dimly lit stores. Source: iStock The company got a bad rap for its discriminatory practices, including its dress code. At one point, it would only hire âattractiveâ people using a loophole that called employees âmodels." It got so bad that in 2016, Abercrombie was ranked the âmost hated retailerâ in America, according to the American Customer Satisfaction Index. Thankfully, Abercrombie shed any toxic elements that once marred its reputation while retaining its appeal among the younger crowd. This strategic shift not only rejuvenated the brand, but also solidified its "cool" status, a feat that many of its contemporaries are still striving to achieve. It was the comeback of the century â at least, until todayâs earnings report sent ANF plummeting more than 15%. Is this turnaround story over? Or is ANFâs pullback a golden opportunity for long-term investors? Hereâs why we believe this could be an incredible opportunity... SPONSORED AD [15 Year âDead-Zoneâ Coming to U.S. Stocks?]( What could be a âDead-Zoneâ will send Americaâs most popular stocks like Nvidia, Apple, Meta, Tesla, and thousands more âplummeting back to Earth. Erasing years of investor profits... And this is why 31 billionaires, including: [Warren Buffett, Elon Musk, Jeff Bezos, and more are quietly unloading shares of their OWN stocks at a record pace!]( Hereâs the unfortunate TRUTH... The last time we saw this exact market event happen... Stocks crashed over -50% â and it took 15 YEARS for stocks to recover back to their peak! Now, Eric Fry â who avoided the crash and showed readers how to profit â is once again going on-air to help you prepare. [Click here for the details](
Buy the Dip According to LikeFolio insights, ANF global traffic growth hit the highest level ever recorded for its two main brands, Abercrombie & Fitch and Hollister, in the second quarter: Digital traffic is increasingly important, comprising 60% of sales. We also found that Abercrombieâs app visits rivaled holiday-level interest in July, driven by a massive [back-to-school]( shopping surge. Hollister app stats couldn't even be displayed on the same chart, they were so dramatic during the summer. Clearly, its promotional "Feel Good Fest" featuring live performances by Gen-Z artists and shoppable social media posts was a smashing success. Abercrombie's merchandising improvement has made it more responsive to quickly changing consumer fashion preferences. Consumer searches for dresses surged in the summer months. And heading into fall, the same can be said for Abercrombieâs trendy, relaxed denim styles. Source: Google Trends Look, expectations were sky-high going into todayâs earnings report. But in reality, the results were glowing. ANF revenue was up 21% year over year to $1.13 billion, besting last yearâs 16% growth and leading Abercrombie to up its guidance for the year. Earnings also beat expectations at $2.50 per share compared to the anticipated $2.22. Bottom line: LikeFolio data suggests Abercrombieâs growth is still well underway. And we think this overdone post-earnings dip could be a perfect opportunity for investors to pick up shares for the long-haul... with one caveat. With Nvidia earnings sure to swing the market, some traders may opt to wait to pick up ANF until NVDAâs report plays out this week â just in case a negative reaction brings the market down with it. Until next time, [Andy Swan's signature]
[Andy Swan's signature] Andy Swan
Founder, LikeFolio Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [From AI to FOMO: Apple Is Riding 3 Enormous Tailwinds into September]( ✓ [DoorDash Is Stepping Up to Save Last-Mile Delivery]( ✓ [One Stock Dominating the Digital Ad Resurgence]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved.
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