Exploring the Growth Potential of NASDAQ:LULU as It Nears a Breakout.

Exploring Growth Potential: LULULEMON ATHLETICA INC (NASDAQ:LULU) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and LULULEMON ATHLETICA INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected LULULEMON ATHLETICA INC on our screen for growth with base formation, suggesting it merits a closer look.

Understanding NASDAQ:LULU's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:LULU, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 31.38% over the past year.
• LULU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.13% yearly.
• Looking at the last year, LULU shows a very strong growth in Revenue. The Revenue has grown by 23.01%.
• LULU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.08% yearly.
• LULU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.95% yearly.
• Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 13.23% on average per year.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:LULU, the assigned 9 for health provides valuable insights:

• LULU has an Altman-Z score of 17.81. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
• LULU's Altman-Z score of 17.81 is amongst the best of the industry. LULU outperforms 100.00% of its industry peers.
• There is no outstanding debt for LULU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 2.32 indicates that LULU has no problem at all paying its short term obligations.

A Closer Look at Profitability for NASDAQ:LULU

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:

• Looking at the Return On Assets, with a value of 16.61%, LULU belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
• With an excellent Return On Equity value of 28.38%, LULU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 30.24%, LULU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• LULU had an Average Return On Invested Capital over the past 3 years of 24.38%. This is significantly above the industry average of 10.60%.
• The 3 year average ROIC (24.38%) for LULU is below the current ROIC(30.24%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 10.89%, LULU belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
• In the last couple of years the Profit Margin of LULU has grown nicely.
• With an excellent Operating Margin value of 21.94%, LULU belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
• LULU's Operating Margin has improved in the last couple of years.
• LULU's Gross Margin of 56.97% is amongst the best of the industry. LULU outperforms 81.63% of its industry peers.

Why is NASDAQ:LULU a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:LULU this score is currently 7:

LULU has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 480.75, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

Check the latest full technical report of LULU for a complete technical analysis.

Disclaimer

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.