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LuLulemon Athletica (US) (LULU-Q)
106 watching
NASDAQ:LULU
308.26
4.53
(1.49%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Mar 23, 2023, 7:59 pm
0
BUY on WEAKNESS
household goods
$309.410
No
DON'T BUY
Lululemon stated that an 84% increase in inventory year-over-year was planned, but he doesn't believe that. The stock is paying forward now, because valuations matter and margins contract.
household goods
DON'T BUY
Lululemon vs. Costco LULU was overestimated vs. Costo being underestimated. LULu shares were killed today after earnings. There have been constant price target hikes for LULU. Today, Lulu saw strong growth in the US and China. Men's sales are gaining speed. BUT it trades at 38x earnings. Investors expected a flawless quarter, but wasn't. There was a little more inventory than expected, and U.S. sales were a tad light. Main problem is that LULU shares shot up before the quarter, so the market mercilessly sold today. It plunged 12.85% today and will likely sell off another day. Wait to see if selling abates on Tuesday. Costco is the total opposite. It has fallen 15% from its August high. They just delivered a good quarter and met expectations, and will pay a special dividend. Owns a big position in Costco. They provide the best merchandise at the lowest price, and they don't overexpand.
household goods
COMMENT
They continue to execute and their stores are crowded with customers, so maybe they'll hold their high multiple. Likes the company.
household goods
BUY
It seemed like a Covid play with a bleak future after Covid (look at Peloton). Today, they announced a new service called Lululemon Studio which allows customers online and in-person fitness instruction. Could this hybrid be the future?
household goods
SELL
Powell's speech on Wednesday was a shift. You can no longer feel that the consumer and earnings are strong. Instead, there is a lot of uncertainty. The markets know inflation will remain stubbornly high and so will yields to combat inflation. Earnings revisions will come down. He sold this because the consumer will face some challenges, and he needs to protect profits. Today is a classic liquidation day.
household goods
BUY on WEAKNESS
She would love to buy Lulu, down $150, though still not cheap because its PE is around 30x and she wants to see 20-25x.
household goods
STRONG BUY
It's about to re-take its 200-day moving average at $388. They're riding momentum; they just announced a very strong quarter and put to rest supply chain worries. They introduced women's footwear to challenge Nike. We will see men's footwear in early 2023. He bought this in the late-February sell-off and is happy to hold this as it returns to all-time highs of $485. He also wears their clothes.
household goods
BUY
options Their footwear line is exciting, and is going after Nike or Addidas. Their direct-to-consumer model is very strong. The footwear will be a multibillion part of their business. Loves it. He sold out his April 350s and rolled them out to the May 370s. So, he's hanging on and hopes shares blast through $388 into the $400s.
household goods
PAST TOP PICK
(A Top Pick Feb 10/22, Down 11.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LULU has triggered its stop at $300. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 6%, when combined with the previous recommendation to cover half the position.
household goods
TOP PICK
Stockchase Research Editor: Michael O'Reilly We again reiterate this Vancouver based stretchy pant manufacturer as a TOP PICK. Recently reported revenues beat expectations by 14% and managed a ROE of 34%. We like that the company continues to increase cash reserves, while buying back shares. As the pandemic lifts, the wellbeing of Gen Z will recover sharply (it is expected) and that will fuel further demand growth. We recommend trailing up the stop (from $250) to $300, looking to achieve $448 -- upside potential over 31%. Yield 0% (Analysts’ price target is $447.64)
household goods
PAST TOP PICK
(A Top Pick Oct 21/20, Up 29%) Valuations are getting stretched. Demand for activewear continues to move higher. European expansion is slow. Expanding product line going up against the likes of Nike. He'll probably pare down soon.
household goods
BUY on WEAKNESS
They've been open about supply chain disruption. The whole sector is out of fashion, but when it returns, this is the first to buy. Buy below $400
household goods
PAST TOP PICK
(A Top Pick Oct 21/20, Up 29%) Cautious on the name at this point. Doing well. Opportunity lies in China. In US, highest sales per square foot than any retailer. Its expanding product line puts it face to face with giant Nike. Rich valuation. He's not adding now.
household goods
BUY
Fine operating margin growth. Their brand is strong. As revenues soared, they leveraged their expenses which resulted in wide operating margins. They had supply constraints, so their quarter would have been even better. They will hit their 2023 goals in 2022, they said. Amazing. It is and should be at an all-time highs. Sadly, she no longer owns this. Bummer.
household goods
LuLulemon Athletica (US)(LULU-Q) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 5
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 3
Total Signals / Votes : 8
LuLulemon Athletica (US)(LULU-Q) Frequently Asked Questions
What is LuLulemon Athletica (US) stock symbol?
LuLulemon Athletica (US) is a American stock, trading under the symbol LULU-Q on the NASDAQ (LULU). It is usually referred to as NASDAQ:LULU or LULU-Q
Is LuLulemon Athletica (US) a buy or a sell?
In the last year, 8 stock analysts published opinions about LULU-Q. 5 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for LuLulemon Athletica (US).
Is LuLulemon Athletica (US) a good investment or a top pick?
LuLulemon Athletica (US) was recommended as a Top Pick by on . Read the latest stock experts ratings for LuLulemon Athletica (US).
Why is LuLulemon Athletica (US) stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is LuLulemon Athletica (US) worth watching?
8 stock analysts on Stockchase covered LuLulemon Athletica (US) In the last year. It is a trending stock that is worth watching.
What is LuLulemon Athletica (US) stock price?
On 2023-03-23, LuLulemon Athletica (US) (LULU-Q) stock closed at a price of $308.26.
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Just last month he signalled a buy, but he just sold it, because he collected a tidy profit. He still likes it. It attracts the luxury consumer, which he remains bullish on, but he took profits. The stock moved up faster than he expected. He will buy it again below $300 for another trade.