#1 - Lululemon (NASDAQ:LULU)
Look good, perform well. That’s the thesis behind buying shares of Lululemon (NASDAQ:LULU). Lululemon burst onto the national consciousness because of their yoga pants. However, the company is so much more than that. It’s an example of premium brands having the pricing power to pass along costs to their consumers.
This pricing power is at the core of my argument for LULU stock because there’s no doubt the stock is overvalued by fundamental metrics. However, every time analysts set a high bar, the athleisure manufacturer climbs over it. As long as it can deliver rising earnings and revenue, the stock price will be supported.
Unlike many of the outdoor living stocks in this presentation, Lululemon was up for the year until recently. However, even a quality stock like LULU has rolled over in the April sell-off. At the time of this writing, the stock is down about 8%. Based on the consensus opinion of analysts, it’s not likely to stay down for very long.
About Lululemon Athletica
Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.
Read More - Current Price
- $355.15
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $476.57 (34.2% Upside)
