Lululemon Athletica Inc., a top notch sports apparel company, raised its fourth quarter earnings and revenue guidance on Monday, leading to an analyst upgrading their price target. The company lifted its EPS guidance from a range of $1.64-$1.67 to $1.72-$1.74, moving its potential year-over-year growth rate from low double digits to mid-to-high teens.
LULU CEO, Calvin McDonald, said the company’s momentum has remained uninterrupted even during the holiday period, underscoring strong demand of its product offerings from customers across the world. The CFO, Patrick Guido, also remarked that the company is set to witness an upside to consensus with long-term targets due to a probable SG&A leverage next year on low-teens revenue growth.
An update on LULU’s 2020 targets is expected to be available when the company reports its Q4 earnings in March.
The RSI Indicator for LULU moved out of oversold territory on April 18, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on April 22, 2024. You may want to consider a long position or call options on LULU as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LULU just turned positive on April 18, 2024. Looking at past instances where LULU's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LULU advanced for three days, in of 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 74 cases where LULU's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for LULU moved below the 200-day moving average on April 22, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LULU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LULU entered a downward trend on April 25, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LULU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LULU's P/B Ratio (11.468) is slightly higher than the industry average of (3.930). P/E Ratio (31.575) is within average values for comparable stocks, (102.859). Projected Growth (PEG Ratio) (1.450) is also within normal values, averaging (1.444). LULU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.027). P/S Ratio (5.089) is also within normal values, averaging (2.038).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retailer of athletic apparels
Industry ApparelFootwearRetail