What's Happening with LULU
Athletic apparel and accessories company Lululemon Athletica Inc. (LULU) reports its second-quarter numbers after the market close September 5. Analysts expect earnings of $0.89 per share, up from $0.71 during the same period last year. LULU has been a strong outperformer in 2019 with shares appreciating 53% on the year.
Technical Analysis
LULU was recently trading at $186.06 down $8.19 from its 12-month high and $75.35 above its 12-month low. InvestorsObserver's Stock Score Report gives LULU a 86 long-term technical score and a 95 short-term technical score. The stock has recent support above $175 and recent resistance below $194. Of the 24 analysts who cover the stock 14 rate it Strong Buy, 1 rate it Buy, 9 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, LULU gets a score of 77 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
LULU has been a top stock in 2019, and another strong earnings report could push shares to a new record high. After gaining over 50% on the year already the stock is now just shy of its all-time high, and if the street's whisper number is right and the company posts a positive earnings surprise of $0.93 you can expect a nice jump in the stock. LULU's valuation is a bit high with a forward P/E of 33, so the stock is priced for perfection and there is a potential for a big sell off on any negative news so current shareholders should have an exit strategy in place just in case things turn south and the market starts to lock in some the stock's recent gains. Earnings growth has been fantastic with profits up 21.6% annually the last five years and looking ahead analysts forecast eanings to rise an additional 18.7% per annum the next five years. Things are looking great for LULU, and the strong growth outlook supports the current valuation, but there is always the rise of a negative report and shareholders should be prepared just in case that does occur.