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?
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
LULU's Indicator enters downward trend
The Aroon Indicator for LULU entered a downward trend on September 11, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 213 similar instances where the Aroon Indicator formed such a pattern. In 160 of the 213 cases the stock moved lower. This puts the odds of a downward move at 75%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LULU as a result. In 58 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 69%.
The Moving Average Convergence Divergence Histogram (MACD) for LULU turned negative on September 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 33 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 73%.
LULU moved below its 50-day moving average on September 04, 2026 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 September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 13 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 62%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LULU's RSI Indicator exited the oversold zone, 29 of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.19% 3-day Advance, the price is estimated to grow further. Considering data from situations where LULU advanced for three days, in 209 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
LULU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 33 (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 Seasonality Score of 50 (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 65 (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 76 (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 (2.287) is normal, around the industry mean (3.090). P/E Ratio (8.146) is within average values for comparable stocks, (20.016). Projected Growth (PEG Ratio) (0.996) is also within normal values, averaging (1.681). LULU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (1.035) is also within normal values, averaging (0.679).
The Tickeron PE Growth Rating for this company is 76 (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 100 (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 89, placing this stock worse than average.
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General Information
a retailer of athletic apparels
Industry ApparelFootwearRetail
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