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LULU vs NKE
Which Stock Would AI Choose? Lululemon Athletica (LULU) vs. Nike (NKE) Stock Comparison
Key Takeaways
- Both LULU and NKE are deep into multi-year drawdowns, with each down roughly half or more in 2026 amid a weaker discretionary consumer environment.
- Lululemon's fiscal second-quarter report triggered a sharp re-rating after management cut full-year guidance for the second time, while core Americas sales contracted sharply.
- Nike posted a mixed quarter: earnings per share (EPS) beat estimates, but revenue fell, Greater China sales dropped sharply, and fiscal 2027 guidance came in below expectations.
- Lululemon offers a stronger balance sheet (nearly $1.4 billion in cash and no debt), while Nike now carries a dividend yield near 5% and a 24-year streak of increases.
- Sentiment is weak in both names, making the comparison one of turnaround execution and relative positioning rather than current momentum.
Introduction
Lululemon Athletica Inc. and Nike, Inc. are two of the most recognized names in athletic apparel, yet both currently face difficult operating conditions. This stock comparison is relevant for investors evaluating the consumer discretionary and sportswear sector, where premium brands are grappling with softer demand, intensifying competition, and shifting consumer preferences. While the two companies differ in scale and business model, both are now trading far below prior highs and are at the center of active turnaround debates. Traders and investors weighing relative performance, valuation, and market positioning may find this side-by-side analysis useful in assessing which name offers the more durable path forward.
LULU Overview and Recent Performance
LULU is a premium technical athletic apparel retailer known for its leggings, activewear, and a strong direct-to-consumer (DTC) footprint across stores and e-commerce. In recent market activity, the stock has suffered a severe re-rating, falling more than 50% year to date and trading below $100 for the first time in several years.
The catalyst was a disappointing fiscal second-quarter report in which revenue declined about 4% year over year and comparable sales fell roughly 9%. Americas revenue dropped around 8%, and sales of the company's signature women's leggings fell approximately 20%, signaling weakened brand momentum. A sizable EPS beat was partly driven by one-time tariff refunds rather than operating strength. Management also cut full-year guidance for the second time in the year, now projecting revenue of roughly $10.35–$10.50 billion and EPS of $9.48–$9.73.
Against this backdrop, the company has announced leadership changes and a product reset, while some value-oriented investors have highlighted its cash-rich, debt-free balance sheet and aggressive share buybacks as points of resilience. Sentiment remains cautious, however, given limited visibility on a demand recovery.
NKE Overview and Recent Performance
NKE is the world's largest athletic footwear and apparel company, operating across the Nike, Jordan, and Converse brands. Like Lululemon, the stock has fallen sharply, down roughly 47–50% in 2026 and about 77% over five years, recently trading near multi-year lows.
Nike's latest fiscal quarter delivered a mixed picture. EPS came in slightly ahead of consensus, and gross margin expanded modestly, but total revenue declined about 4% and missed estimates. Nike Direct and digital sales continued to fall, Greater China revenue dropped roughly 26% on a currency-neutral basis, and Converse sales fell sharply. Management guided to a high-single-digit revenue decline for fiscal 2027 and adjusted EPS well below prior expectations, while announcing a restructuring initiative and additional job cuts.
Offsetting these pressures, Nike is rebuilding wholesale relationships, refocusing on performance categories, and leaning on athlete-driven product launches. Its dividend, raised for 24 consecutive years, now yields close to 5%, though the payout consumes a large share of earnings. Sentiment reflects a turnaround still in progress.
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Head-to-Head Comparison
The two companies diverge meaningfully despite sharing a sector. Lululemon is a smaller, premium, DTC-led business with a concentrated product line and a heavy reliance on the Americas market; Nike is a diversified global brand platform spanning footwear, apparel, and multiple labels with a large wholesale network. This difference shapes their risk profiles: Lululemon's decline is driven largely by softening demand for its core products, while Nike's challenges span geography (particularly China), digital strategy, and brand competition from newer rivals.
On financial positioning, Lululemon's balance sheet is comparatively stronger, with substantial cash and no debt, and it is buying back stock at depressed prices. Nike carries more operating scale and a meaningful dividend, but its payout is running high relative to current earnings guidance, and its cash position has declined in recent years. Neither stock currently offers positive momentum; both are in downtrends. Lululemon trades at a historically low price-to-earnings multiple, while Nike's valuation appears elevated once one-time tariff benefits are excluded, though analysts are divided on whether either represents a genuine value opportunity or a "value trap."
Tickeron AI Verdict
Based on observable trend data, neither LULU nor NKE currently displays the stable, confirmed uptrend that a trend-following AI system typically favors, which suggests the AI would likely exercise caution on both. That said, relative positioning may lean slightly toward Lululemon. Its cleaner balance sheet, aggressive buybacks, and a valuation that has compressed to record-low multiples offer comparatively more cushion and clearer catalysts, whereas Nike's elevated payout ratio and deeper geographic headwinds introduce additional uncertainty around trend consistency. In probabilistic terms, Lululemon's setup appears somewhat more constructive for a stabilization scenario, though neither name yet offers the trend confirmation that AI models generally seek before favoring a position.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LULU is a Buy and NKE is a Buy.
LULU's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for LULU turned positive on October 09, 2026. Looking at past instances where LULU's MACD turned positive, the stock continued to rise in 36 of 45 cases over the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
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, 27 of 41 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 66%.
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on LULU as a result. In 56 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
LULU moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LULU crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +5.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where LULU advanced for three days, in 203 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 75%.
LULU broke above its upper Bollinger Band on October 29, 2026. 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 Aroon Indicator for LULU entered a downward trend on October 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put 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 Price Growth Rating for this company is 59 (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 67 (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 (2.471) is normal, around the industry mean (1.860). P/E Ratio (8.802) is within average values for comparable stocks, (12.547). Projected Growth (PEG Ratio) (1.096) is also within normal values, averaging (0.517). Dividend Yield (0.000) settles around the average of (0.065) among similar stocks. P/S Ratio (1.004) is also within normal values, averaging (0.652).
The Tickeron PE Growth Rating for this company is 75 (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 Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 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 86, placing this stock worse than average.
NKE's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for NKE turned positive on October 08, 2026. Looking at past instances where NKE's MACD turned positive, the stock continued to rise in 26 of 43 cases over the following month. The odds of a continued upward trend are 60%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on NKE as a result. In 47 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 52%.
NKE moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NKE crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +1.82% 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in 140 of 263 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
The Aroon Indicator entered an Uptrend today. In 81 of 149 cases where NKE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
Bearish Trend Analysis
The 10-day RSI Indicator for NKE moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 15 similar instances where the indicator moved out of overbought territory. In 7 of the 15 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
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.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE 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 72%.
NKE broke above its upper Bollinger Band on October 15, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating 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 55 (best 1 - 100 worst), indicating fairly steady price growth. NKE’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 63 (best 1 - 100 worst) indicates that the company is fair valued 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 (3.840) is normal, around the industry mean (2.923). P/E Ratio (18.324) is within average values for comparable stocks, (12.259). Projected Growth (PEG Ratio) (1.427) is also within normal values, averaging (0.949). Dividend Yield (0.043) settles around the average of (0.052) among similar stocks. P/S Ratio (1.142) is also within normal values, averaging (1.162).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 PE Growth Rating for this company is 86 (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. NKE’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 88, placing this stock worse than average.
LULU | NKE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 29 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 33 | 44 | |
PRICE GROWTH RATING 1..100 | 59 | 55 | |
P/E GROWTH RATING 1..100 | 75 | 86 | |
SEASONALITY SCORE 1..100 | 85 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
NKE's Valuation (63) in the Apparel Or Footwear industry is in the same range as LULU (67) in the Apparel Or Footwear Retail industry. This means that NKE’s stock grew similarly to LULU’s over the last 12 months.
NKE's Profit vs Risk Rating (100) in the Apparel Or Footwear industry is in the same range as LULU (100) in the Apparel Or Footwear Retail industry. This means that NKE’s stock grew similarly to LULU’s over the last 12 months.
LULU's SMR Rating (33) in the Apparel Or Footwear Retail industry is in the same range as NKE (44) in the Apparel Or Footwear industry. This means that LULU’s stock grew similarly to NKE’s over the last 12 months.
NKE's Price Growth Rating (55) in the Apparel Or Footwear industry is in the same range as LULU (59) in the Apparel Or Footwear Retail industry. This means that NKE’s stock grew similarly to LULU’s over the last 12 months.
LULU's P/E Growth Rating (75) in the Apparel Or Footwear Retail industry is in the same range as NKE (86) in the Apparel Or Footwear industry. This means that LULU’s stock grew similarly to NKE’s over the last 12 months.
| LULU | NKE | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 66% | 2 days ago 47% |
| Stochastic ODDS (%) | 2 days ago 68% | 2 days ago 89% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 52% |
| MACD ODDS (%) | 2 days ago 80% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 65% | 2 days ago 54% |
| TrendMonth ODDS (%) | 2 days ago 69% | 2 days ago 53% |
| Advances ODDS (%) | 7 days ago 63% | 3 days ago 53% |
| Declines ODDS (%) | 22 days ago 75% | 8 days ago 72% |
| BollingerBands ODDS (%) | 2 days ago 71% | 2 days ago 69% |
| Aroon ODDS (%) | 2 days ago 74% | 2 days ago 54% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LULU’s FA Score shows that 1 FA rating(s) are green while NKE’s FA Score has 0 green FA rating(s).
- LULU’s FA Score: 1 green, 4 red.
- NKE’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LULU’s TA Score shows that 6 TA indicator(s) are bullish while NKE’s TA Score has 6 bullish TA indicator(s).
- LULU’s TA Score: 6 bullish, 4 bearish.
- NKE’s TA Score: 6 bullish, 4 bearish.
Price Growth
LULU (@Apparel/Footwear Retail) experienced а +2.26% price change this week, while NKE (@Wholesale Distributors) price change was +2.45% for the same time period.
The average weekly price growth across all stocks in the @Apparel/Footwear Retail industry was -0.19%. For the same industry, the average monthly price growth was -0.25%, and the average quarterly price growth was -4.55%.
The average weekly price growth across all stocks in the @Wholesale Distributors industry was +15.01%. For the same industry, the average monthly price growth was +12.97%, and the average quarterly price growth was +13.93%.
Reported Earning Dates
LULU is expected to report earnings on Dec 10, 2026.
NKE is expected to report earnings on Dec 17, 2026.
Industries' Descriptions
@Apparel/Footwear Retail (-0.19% weekly)Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.
@Wholesale Distributors (+15.01% weekly)Companies in this industry handle the wholesale shipments for the manufacturer of a product. They have warehouses and distribution centers, and they ship products directly to the retailer. Digitization, increasing competition, emerging customer demand, and product innovation are some of shifts that the industry has been facing in recent times – something that is potentially creating needs/opportunities for business model revisions or transformations. Data, analytics, and technology are becoming increasingly important for whole distributors in anticipating and analyzing consumer needs, and therefore planning their business strategies accordingly. Fastenal Company, W.W. Grainger, Inc., Genuine Parts Company and Pool Corporation are some of the largest names in the business.
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LULU and
Correlation & Price change
A.I.dvisor indicates that over the last year, LULU has been loosely correlated with CAL. These tickers have moved in lockstep 43% of the time. This A.I.-generated data suggests there is some statistical probability that if LULU jumps, then CAL could also see price increases.
| Ticker / NAME | Correlation To LULU | 1D Price Change % | ||
|---|---|---|---|---|
| LULU | 100% | -0.82% | ||
| CAL - LULU | 43% Loosely correlated | -2.80% | ||
| DBI - LULU | 42% Loosely correlated | -4.07% | ||
| SFIX - LULU | 41% Loosely correlated | -1.79% | ||
| ZUMZ - LULU | 39% Loosely correlated | -4.54% | ||
| SHOE - LULU | 38% Loosely correlated | -3.27% | ||
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NKE and
Correlation & Price change
A.I.dvisor indicates that over the last year, NKE has been loosely correlated with COLM. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if NKE jumps, then COLM could also see price increases.
| Ticker / NAME | Correlation To NKE | 1D Price Change % | ||
|---|---|---|---|---|
| NKE | 100% | -1.64% | ||
| COLM - NKE | 56% Loosely correlated | -1.50% | ||
| UA - NKE | 53% Loosely correlated | +1.18% | ||
| LEVI - NKE | 52% Loosely correlated | -0.69% | ||
| UAA - NKE | 51% Loosely correlated | +1.53% | ||
| OXM - NKE | 50% Loosely correlated | -1.47% | ||
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