On June 13, 2026, Zacks Equity Research made headlines by naming Quanta Services, Inc. (NYSE: PWR) its Bull of the Day and lululemon athletica inc. (NASDAQ: LULU) its Bear of the Day, highlighting the diverging fortunes of two high-profile companies at the intersection of infrastructure and consumer retail. Their designations come amid a flurry of analyst downgrades, insider buying, and institutional repositioning, painting a vivid picture of shifting sentiment in the U.S. markets.
Quanta Services, a Houston-based leader in energy infrastructure, has been riding an extraordinary wave. According to Zacks, the company has more than doubled its revenue and both GAAP and adjusted earnings per share between 2021 and 2025, fueled by the AI-driven energy infrastructure boom. The numbers tell the story: Quanta closed the first quarter of 2026 with a record backlog of $48.5 billion, reflecting surging demand across utility, generation, and large-load markets. CEO Duke Austin attributes this success to the company’s “compounding model” and its “unique positioning at the center of converging utility, generation and large-load markets.”
Looking ahead, Quanta is targeting a total addressable market of $2.4 trillion through 2030 and has set its sights on more than doubling its adjusted EPS by 2030 versus 2025 levels. Zacks projects PWR to grow revenue by 22% in 2026 and another 13% in 2027, reaching a staggering $38.95 billion. Adjusted EPS is forecast to rise 30% this year and another 18% next year, hitting $16.38 per share. The stock’s performance has been nothing short of remarkable, surging roughly 88% over the past year and an eye-popping 640% over the past five years—outpacing the S&P 500, Meta, and Microsoft in both timeframes.
Backing this growth is a robust balance sheet. In late May, Quanta announced a new $1 billion share repurchase program, supported by free cash flow growth of 55% in Q1 2026 to $184 million. These upward earnings revisions have earned PWR a Zacks Rank No. 1, or Strong Buy, making it one of the research firm’s highest-conviction ideas for investors seeking exposure to the infrastructure boom.
But while Quanta is basking in the glow of institutional optimism, lululemon athletica is facing a much tougher environment. Zacks named LULU its Bear of the Day, citing a deepening earnings downgrade cycle. The company’s Q2 2026 estimate fell by roughly 27% after its June 4 quarterly report, with full-year 2026 and 2027 estimates dropping 8% and 9%, respectively. Americas comparable sales—a crucial metric—declined 3% in fiscal 2025 and worsened to a 5% year-over-year drop in Q1 FY26. Revenue growth, once a robust 23% average between 2018 and 2023, collapsed to just 5% in FY25, marking lululemon’s lowest-ever year-over-year expansion as a public company.
Competitors such as Alo, Vuori, and a host of online-only startups are chipping away at lululemon’s market share. Meanwhile, broader fashion trends appear to be drifting away from the brand’s core offerings. The company’s adjusted earnings are expected to fall 14% year-over-year in FY26, and the stock has plummeted roughly 50% over the past year—a staggering 75% decline from its early 2024 peaks. The selloff has pushed lululemon’s forward earnings multiple to its lowest-ever level of 9.4 times forward 12-month EPS, a valuation that may attract bargain hunters willing to wait for a turnaround.
Institutional investors have taken notice. As of the fourth quarter of 2025, DE Burlo Group Inc. increased its stake in lululemon by 23%, owning 73,925 shares worth approximately $15.36 million, making it the 22nd largest position in its portfolio. Other funds have also been active, with 85.2% of lululemon stock now owned by institutional investors and hedge funds, and just 0.54% owned by corporate insiders.
Insider activity has also caught attention. On April 1, 2026, CEO Andre Maestrini bought 3,275 shares at an average price of $151.02, increasing his ownership by 10.47% to 34,551 shares, valued at about $5.22 million. Director Charles V. Bergh made a similar move on March 20, purchasing 6,090 shares at $164.20 each, for a total of nearly $1 million. These insider purchases, disclosed in SEC filings, suggest that some company leaders see value at current levels—even as Wall Street analysts turn increasingly cautious.
On June 4, 2026, lululemon reported Q1 earnings of $1.69 per share, narrowly beating consensus estimates by $0.02, with revenue of $2.47 billion, up 4.3% year-over-year. The company’s return on equity stood at an impressive 31.26%, and net margin was 13.03%. Lululemon set its FY 2026 EPS guidance at 10.950 to 11.150, and Q2 2026 guidance at 1.760 to 1.810 EPS. Yet, the market remains skeptical. As of June 14, 2026, lululemon’s stock traded at $118.77, with a market capitalization of $14.09 billion and a P/E ratio of 9.59. Analysts have responded by downgrading the stock to Neutral or Hold, with price targets lowered to between $110 and $140.
Gary Alexander, one of the analysts who issued a downgrade, summed up the prevailing sentiment: “With lululemon changing its growth targets and seeing very choppy comp sales trends, we think it’s unlikely for the stock to enjoy an upward re-rating anytime soon. Given the poor results here, it’s best to move to the sidelines and lock in losses for now.”
The broader context is one of flux across the market. Other notable moves include Plug Power Inc., which saw shares surge 120% in the past year, driven by a 22% year-over-year revenue increase in Q1 2026 and a 345% jump in electrolyzer product line revenues. Plug Power secured a contract in May to supply 30 MW of GenEco PEM electrolyzers for a hydrogen plant in Barrow-in-Furness, Cumbria, and in April received a FEED contract from Hy2gen Canada for a 275 MW electrolyzer system. Yet, despite these wins, Plug Power recorded a gross margin of negative 13% and an operating cash outflow of $150 million, earning a Zacks Rank No. 3 (Hold).
Meanwhile, FuelCell Energy returned a remarkable 156.5% over the past year, while Flux Power Holdings declined 41.6%—underscoring the volatility and divergent fortunes in the clean energy sector.
For investors, the current landscape is a tale of two markets: companies like Quanta Services are capitalizing on massive, long-term infrastructure trends and enjoying analyst adulation, while former darlings like lululemon are being forced to reckon with shifting consumer tastes, intensifying competition, and a skeptical Wall Street. The coming quarters will reveal whether the pessimism surrounding lululemon is overdone—or if the company’s struggles are just beginning.