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Pick RecapMonday, July 6, 2026

ADBE, LULU, COO, PINS: Open Picks Mid-2026 Recap

ADBE trades at 8.7x forward with 96/100 Quality. LULU is down 7.7%. Here's how ACCE's open picks stack up at mid-2026.

Adrien Chantreuil
Adrien Chantreuil
Founder, ACCE Investments

ADBE, LULU, COO, PINS: Open Picks Mid-2026 Recap

Seven months into 2026, the ACCE open pick list spans consumer brands, healthcare devices, financial data, and software. Some are working. One has already closed at a loss. The rest sit in a range of early-stage setups where the thesis is intact but the market hasn't moved yet. Here's where each stands as of July 6, 2026.


Adobe (ADBE): The Highest-Quality Name on the Board

Adobe (ADBE) is the most analytically interesting position on the list right now. The Quality subscore sits at 96/100. ROE is 62.9%. Net margin is 28.7%. FCF yield is 11.3%. These are numbers that belong to a dominant, capital-light franchise, not a stock trading at a forward P/E of 8.7.

The 1-year return is -42.1%. The CFO departure spooked the market, and the broader fear that generative AI commoditizes creative software has kept the stock under pressure. The analyst consensus target is $280.66. The Value subscore is 85/100, which reflects just how compressed the multiple has become relative to the underlying business.

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The one real concern: Momentum is 17/100. That's a stock in a sustained downtrend, and the market hasn't found a reason to reverse it yet. Revenue grew 12.7% year over year and earnings grew 7.9%. AI ARR has tripled past $500M. The fundamentals are not deteriorating. The multiple compression is the story, and at 8.7x forward earnings with a 96 Quality score, the setup remains compelling on a 12-to-18-month view.


lululemon (LULU): The One That Closed at a Loss

lululemon athletica (LULU) is the only closed position in the recent pick set, and it closed at -7.7%. The thesis was straightforward: under 10x forward earnings, zero debt, 57% gross margins, and two activists pushing for board changes ahead of a June 25 vote.

The market didn't cooperate. Year-over-year earnings fell 35.0%, and revenue growth slowed to 4.3%. The brand is still generating strong margins, with a net margin of 13.0% and FCF yield of 6.9%, but the growth deceleration is real. The forward P/E now sits at 10.4x and the Value subscore is 87/100, so the stock still screens cheap. But Momentum is 17/100, the same problem as ADBE, and the earnings trajectory gave the market no reason to re-rate.

The lesson here isn't that the thesis was wrong on quality. It's that a low-momentum, decelerating-growth consumer brand needs a specific catalyst to move, and the activist pressure alone wasn't enough in the near term.


S&P Global (SPGI): Down 17% YTD, Quality Still Intact

S&P Global (SPGI) was picked on a spin catalyst thesis, with the stock priced roughly 25% below analyst consensus. The analyst target is $462.67. The 1-year return is -16.9%, and the stock is down 17% year to date.

The underlying business is not the problem. Revenue grew 10.4% year over year. Earnings grew 32.5%. Net margin is 30.4%. The Quality subscore is 86/100. This is a Dividend King with a durable ratings and data franchise.

The issue is Momentum at 23/100. The market has been selling financial data businesses broadly, and SPGI hasn't been immune. The Growth subscore of 76/100 suggests the fundamental trajectory is solid. At a forward P/E of 22.4x with 32.5% earnings growth, the multiple isn't stretched relative to the earnings power. The thesis here is patience: the spin catalyst and earnings growth should eventually close the gap to consensus.


Pinterest (PINS): Elliott Engaged, Float Shrinking

Pinterest (PINS) sits about 50% below its all-time high. The 1-year return is -38.1%. Elliott Management is engaged, and a $3.5B buyback is actively compressing the float.

The data tells a mixed story. Revenue grew 17.8% year over year, which is the best top-line growth rate among the consumer-facing picks. FCF yield is 10.1%. But earnings fell 84.6% year over year, and the Momentum subscore is 23/100. The market is not yet pricing in the buyback or the activist pressure.

The forward P/E of 12.3x against 17.8% revenue growth is the core of the value argument. The analyst target is $27.77. Quality sits at 62/100 and Value at 63/100, both reasonable but not exceptional. This is a turnaround-and-capital-return story, not a quality compounder. The Elliott involvement is the variable that could accelerate the timeline.


Cooper Companies (COO): Strategic Review Still Running

The Cooper Companies (COO) is a medical-device compounder with 10 consecutive earnings beats. The board is running a formal strategic review, which could surface a takeout or a significant restructuring.

Year-over-year earnings grew 26.9% and revenue grew 7.9%. The forward P/E is 14.7x. The analyst target is $80.57. The 1-year return is essentially flat at +1.2%, which means the stock has gone nowhere while the underlying business has compounded.

The ACCE score is 53/100, with Growth at 56, Value at 49, Quality at 50, and Momentum at 56. None of those subscores are alarming, but none are compelling in isolation either. The strategic review is the asymmetric element. A takeout at even a modest premium to the analyst target would represent a meaningful return from current levels. Without that catalyst, this is a slow-burn compounder trading at a reasonable multiple.


The Common Thread

Look across these positions and one pattern is consistent: high Quality scores paired with Momentum scores in the teens or low twenties. ADBE at 96 Quality, 17 Momentum. LULU at 85 Quality, 17 Momentum. SPGI at 86 Quality, 23 Momentum. PINS at 62 Quality, 23 Momentum.

These are not broken businesses. They are businesses where the market has been selling the narrative, not the fundamentals. The picks were made on the premise that quality and value eventually reassert themselves, particularly when activist pressure, buybacks, or specific catalysts provide a timing mechanism.

The LULU loss shows that timing mechanism can fail. The ADBE setup shows that a 96 Quality score at 8.7x forward earnings is a rare combination that doesn't stay available indefinitely. The next 90 days, with earnings season arriving in mid-July and SPGI's spin catalyst already dated, will test whether the fundamental case starts translating into price.

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Frequently asked questions

Why is Adobe (ADBE) trading at such a low forward P/E?

ADBE trades at 8.7x forward earnings largely because of a CFO departure and market fears that generative AI will erode its creative software franchise. The underlying business still posts 12.7% revenue growth, 28.7% net margins, and a 96/100 Quality score, but Momentum sits at just 17/100, reflecting a sustained downtrend that hasn't reversed.

What went wrong with the lululemon (LULU) pick?

The LULU pick closed at -7.7%. Year-over-year earnings fell 35.0% and revenue growth slowed to 4.3%, giving the market no catalyst to re-rate the stock despite its 87/100 Value score and zero debt. Activist pressure ahead of the June 25 board vote wasn't enough to move the stock in the near term.

Is S&P Global (SPGI) still a good pick after falling 17% year to date?

SPGI's fundamentals remain strong: 10.4% revenue growth, 32.5% earnings growth, and a 30.4% net margin. The analyst consensus target is $462.67, roughly 25% above where the stock trades. The Momentum subscore of 23/100 is the main drag, but the spin catalyst and earnings trajectory support the thesis on a longer time horizon.

What is the Elliott Management angle on Pinterest (PINS)?

Elliott Management is engaged at Pinterest, and the company has a $3.5B buyback actively compressing the float. PINS trades about 50% below its all-time high with a forward P/E of 12.3x against 17.8% revenue growth. The activist involvement is the primary catalyst that could accelerate a re-rating.

What does the Cooper Companies (COO) strategic review mean for shareholders?

COO's board is running a formal strategic review that could result in a takeout or significant restructuring. The stock has a 1-year return of just +1.2% despite 26.9% year-over-year earnings growth and 10 consecutive earnings beats. A takeout at even a modest premium to the $80.57 analyst target would represent a meaningful return from current levels.

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