Rachel Warren

But I think there's going to be a lot of exciting news for investors to watch here.

Yeah, there's a few.

I mean, I have to talk about a company from the retail space, which I cover a lot, and that's Lululemon.

I mean, they're trading at about 11 times trailing earnings now.

And the stock's been under pressure for a while.

There's been, you know, obviously concerns about its maturation and of its growth in North America.

There's been a few execution misses on product launches.

But the underlying engine, I would argue, is still a very high-quality business.

I mean, you're looking at a brand with industry-leading margins, massive untapped runway in international markets like China, which they are

rapidly expanding.

And so that's a company I look at, I think of a dominant consumer brand, high customer loyalty, it's trading and evaluation that's often reserved for sort of those average slow growth retailers.

One more I'll mention, or maybe a couple more is Microsoft and Alphabet, right?

In the tech space.

I mean, Microsoft is sort of in this rare position, right?

I personally view it as actually cheap relative to its earnings potential in the AI era.

You know, they're both, both Alphabet and Microsoft are trading in the low 20s times the

trailing earnings you're looking at incredible growth rates for both these businesses you know in microsoft's case they've really positioned themselves the essential operating system for ai of course alphabet with their growing tpu business and their integration of ai across the flagship advertising machine so i think these are really high quality businesses um that are undervalued relative to their their growth ability right now and there's there's many of those

Hello, everyone, and welcome back to Motley Fool Conversations.

I'm Motley Fool analyst Rachel Warren, and today I'm excited to welcome Chris Bradley to the show.

Chris is a senior partner at McKinsey & Company.