LULULEMON ATHLETICA

LULU
Delayed Quote. Delayed  - 01/15 04:00:00 pm
344.5USD -0.93%

lululemon athletica Inc. : The revival in interest should continue

David Meurisse
Contributor / Partner

Strategy published on : 01/13/2020 | 10:36

long trade
Stop-loss triggered

Entry price : 241.845$
Target : 275.7$
Stop-loss : 226$
Potential : 14%

lululemon athletica Inc. shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic.
Investors have an opportunity to buy the stock and target the $ 275.7.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The group's high margin levels account for strong profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The stock is in a well-established, long-term rising trend above the technical support level at 182.82 USD


Weaknesses

● The stock is close to a major daily resistance at USD 237.27, which should be gotten rid of so as to gain new appreciation potential.

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 48.9 times its estimated earnings per share for the ongoing year.

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