Lululemon (LULU) Looking to Bounce as Earnings Loom
Casual clothing manufacturer, Lululemon Athletica (Nasdaq: LULU), has dropped sharply in the last few months. The stock has fallen over 28% from its high to the recent low. The good news is that the stock may have found support earlier this week in the $118 area.
Looking at the weekly chart we see that the stock shot up back on June 1, moving from $105 to over $122. After that jump, the stock consolidated for almost two months before dipping down to the $118 area at the end of July. Earlier this week the stock dropped down to $118.52 before bouncing back and that could mean the $118 area is now acting as support.
You can also see that the weekly stochastic readings are the lowest they have been in the last 18 months and so is the 10-week RSI.
Lulu is scheduled to release earnings again on December 5, with analysts expecting the company to report earnings of $0.69 per share on revenue of $735.9 million. The company reported EPS of $0.56 in the same quarter last year, meaning expectations are for earnings growth of 23.2%. In the last earnings report, earnings grew by 82%. Earnings have averaged annual earnings growth of 18% over the last three years.
It is worth noting that the stock has gapped higher after each of the last four earnings reports. Will it do so again in December?
LULU in upward trend: price rose above 50-day moving average on November 25, 2025
LULU moved above its 50-day moving average on November 25, 2025 date and that indicates a change from a downward trend to an upward trend. In of 29 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2025. You may want to consider a long position or call options on LULU as a result. In of 84 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 November 21, 2025. 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 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 .
LULU broke above its upper Bollinger Band on November 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 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 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: P/B Ratio (4.919) is normal, around the industry mean (7.778). P/E Ratio (12.419) is within average values for comparable stocks, (31.545). LULU's Projected Growth (PEG Ratio) (0.929) is slightly lower than the industry average of (2.332). LULU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (2.023) is also within normal values, averaging (3.705).
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 Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LULU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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General Information
a retailer of athletic apparels
Industry ApparelFootwearRetail
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