NASDAQ:LULU qualifies as a high growth stock and is consolidating.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether LULULEMON ATHLETICA INC (NASDAQ:LULU) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but LULULEMON ATHLETICA INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for NASDAQ:LULU

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:LULU boasts a 8 out of 10:

• LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.03%, which is quite impressive.
• The Earnings Per Share has been growing by 31.13% on average over the past years. This is a very strong growth
• The Revenue has grown by 25.17% in the past year. This is a very strong growth!
• The Revenue has been growing by 25.08% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.54% on average per year.
• Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 12.26% on average per year.

Health Assessment of NASDAQ:LULU

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LULU has received a 9 out of 10:

• LULU has an Altman-Z score of 15.09. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 15.09, LULU belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
• LULU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 2.40 indicates that LULU has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:LULU has earned a 9 out of 10:

• The Return On Assets of LULU (16.81%) is better than 97.87% of its industry peers.
• Looking at the Return On Equity, with a value of 28.51%, LULU belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
• LULU has a Return On Invested Capital of 29.14%. This is amongst the best in the industry. LULU outperforms 100.00% of its industry peers.
• LULU had an Average Return On Invested Capital over the past 3 years of 24.38%. This is significantly above the industry average of 10.58%.
• The 3 year average ROIC (24.38%) for LULU is below the current ROIC(29.14%), indicating increased profibility in the last year.
• The Profit Margin of LULU (11.40%) is better than 89.36% of its industry peers.
• In the last couple of years the Profit Margin of LULU has grown nicely.
• LULU's Operating Margin of 22.12% is amongst the best of the industry. LULU outperforms 97.87% of its industry peers.
• In the last couple of years the Operating Margin of LULU has grown nicely.
• LULU has a better Gross Margin (56.75%) than 82.98% of its industry peers.

Why is NASDAQ:LULU a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:LULU is 8:

LULU has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 401.23. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 383.33, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of LULU

For an up to date full technical analysis you can check the technical report of LULU

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.