NASDAQ:LULU—Positioned as a High-Growth Stock, Ready for a Potential 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.

Evaluating Growth: NASDAQ:LULU

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:LULU has received a 8 out of 10:

• LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.38%, which is quite impressive.
• 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%.
• The Revenue has been growing by 25.08% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 17.95% on average over the next years. This is quite good.
• LULU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.23% yearly.

Health Analysis for NASDAQ:LULU

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:LULU scores a 9 out of 10:

• LULU has an Altman-Z score of 16.86. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of LULU (16.86) is better than 100.00% of its industry peers.
• 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 2.32 indicates that LULU has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:LULU

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:LULU scores a 9 out of 10:

• With an excellent Return On Assets value of 16.61%, LULU belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 28.38%, LULU belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
• LULU has a better Return On Invested Capital (30.24%) than 100.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for LULU is significantly above the industry average of 10.02%.
• The last Return On Invested Capital (30.24%) for LULU is above the 3 year average (24.38%), which is a sign of increasing profitability.
• LULU has a Profit Margin of 10.89%. This is amongst the best in the industry. LULU outperforms 92.00% of its industry peers.
• LULU's Profit Margin has improved in the last couple of years.
• The Operating Margin of LULU (21.94%) is better than 98.00% of its industry peers.
• 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 82.00% of its industry peers.

Why is NASDAQ:LULU a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:LULU scores a 7 out of 10:

Although the technical rating is only medium, LULU does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 449.59, a Stop Loss order could be placed below this zone.

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

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

Our latest full technical report of LULU contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.