Lululemon Athletica Nasdaq: Lulu Stocks have been on a tear in recent months, and for good reason. After a tough first half through 2024, the stock finished the year with An impressive careerIt has risen by 70% since August. We turn to the first couple to Weeks into the new year, Lululemon’s momentum shows no signs of slowing down.
Lululemon Athletica today
Lululemon Athletica
As of 10/01/2025 at 04:00 PM ET
- 52 week range
- $226.01
▼
$491.30
- P/E ratio
- 28.55
- Price target
- $382.73
The company, which is headquartered in Vancouver and boasts a market capitalization of about $50 billion, has firmly established itself as a leader in sports entertainment. Known for its premium yoga pants and activewear, Lululemon has built a loyal customer base and expanded its footprint All over the world.
But while the broader market was able to spend most of last year at or near all-time highs, Lululemon has struggled to keep its head above water. It’s still a bit off its record close From December 2023but there are reasons to believe so That won’t be the case For much longer. Let’s jump.
Why Lululemon’s fundamentals support continued growth
To start withLululemon’s recent financial performance has been… to some extent Strong in recent quarters. The company shattered expectations with Latest earnings report Last month, it achieved revenue growth of more than 9% year-over-year. This was it With company Through strong forward guidance and an update from management on the increase in the stock repurchase program, it is one of the… Most signs are bullish The company can send to investors.
When CEOs are willing to put their money where their mouth is, it strongly indicates that they believe in their stock Undervalued. Investors should look for the stock to continue its upward trajectory as these tailwinds increase. With macro factors such as the Fed cutting interest rates, fueling the risk environment for stocks and bonds more Consumer spendingLululemon’s core drivers align well with broader market trends. The stock should take advantage of these tailwinds accordingly.
Analysts highlight Lululemon’s undervalued potential
Lululemon Athletica MarketRank™ Stock Analysis
- Total MarketRank™
- Percentage 68
- Analyst evaluation
- Moderate purchase
- Upside/Downside
- 3.2% negatives
- Short interest level
- correct
- Earnings power
- nothing
- Environmental outcome
- -3.36
- News feelings
- 0.71
- Insider trading
- Selling shares
- project. Earnings growth
- 6.70%
See full analysis
Based on the issue shared by Lululemon Undervalued For now, they’ve gained all the right kind of analyst attention this year so far. This week alone, the JPMorgan team reiterated its overweight rating on Lululemon stock, citing the company’s strong position in a fast-growing market. Also, this week, Bernstein raised its rating on the stock to outperform and set it to outperform Target price $460.
From where the stock closed Wednesday night, that suggests a target upside of roughly 20%. Bernstein’s optimism is rooted in an expected turning point in the company’s business in the Americas, driven by… Increase spending Of high-income consumers. For those of us on the sidelines, it’s a compelling argument to rely on.
Is Lululemon’s 2024 rise justified?
Of course, no investment is risk-free, and Lululemon’s meteoric rise in the latter half of 2024 has not gone unnoticed. In December, Citigroup and Deutsche Bank issued neutral ratings, suggesting they wanted more signs of underlying performance that would justify a rise.
However, while their concerns are noteworthy, they feel overly cautious in light of the company’s strong earnings performance and bullish stock buyback plan. And with a strong first-quarter earnings report likely to dispel many of these doubts, investors should take action Be predictable Stocks to continue playing catch up with the broader market.
Lululemon’s technical setup supports further gains
The final piece of the puzzle to consider is Lululemon’s technical setup. The stock’s Relative Strength Index (RSI) currently stands at 63, The level that indicates Strong momentum without being overbought.
For context, the Relative Strength Index is a widely used indicator to measure the speed and variability of price movements, with readings above 70 being considered overbought and below 30 oversold. In the case of Lululemon, its RSI indicates strong momentum that is likely to continue for some time. Combine this with its ability to beat analyst expectations for its earnings and bullish analyst updates this week, and it’s hard not to be excited about what’s to come.
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