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.
LULU saw its Momentum Indicator move above the 0 level on April 22, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LULU's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that 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 42 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 .
LULU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
LULU moved below its 50-day moving average on March 22, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LULU crossed bearishly below the 50-day moving average on March 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over 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 low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
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 (3.862). P/E Ratio (31.575) is within average values for comparable stocks, (100.955). 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 (2.003).
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