Can Lululemon Extend its Remarkable Bull Run on Q3 Numbers?

Friday, December 6, 2019 3:19 PM | Michael Fowlkes

What's Happening with LULU

Athletic apparel company Lululemon Athletica Inc. (LULU) reports third-quarter numbers after the market close on December 11. Analysts forecast earnings of $0.93 per share. During the same period last year the company posted earnings of $0.75 per share and the stock has risen 88% on the year.

Technical Analysis

LULU was recently trading at $231.28 down $1.81 from its 12-month high and $120.57 above its 12-month low. InvestorsObserver's Stock Score Report gives LULU a 93 long-term technical score and a 76 short-term technical score. The stock has recent support above $210 and recent resistance below $233. Of the 22 analysts who cover the stock 12 rate it Strong Buy, 0 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, LULU gets a score of 68 from InvestorsObserver's Stock Score Report.

Analysts' Thoughts

LULU stock has almost doubled in 2019 with the company posting a string of big top and bottom line beats. LULU has posted better than expected earnings for 10 straight quarters, while sales have been better than expected the last 12 quarters. The street expects another positive earnings surprise with a whisper number of $0.98 for the quarter. The stock has a high valuation with a P/E of 56, while earnings are expected to rise at an annual rate of 20% over the next five years. The strong growth forecast would keep strength under the stock, but with shares priced for perfection any miss would lead to a deep selloff. Look for another positive earnings surprise, but the company will need to be close to the street's whisper for traders to keep pushing shares higher. Analysts have an average price target of $217.22 on the stock.

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