NASDAQ:LULU, a strong growth stock, setting up for a breakout.

Last update: Mar 12, 2024

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.

Analyzing Growth Metrics

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.
The Earnings Per Share has been growing by 31.13% on average over the past years. This is a very strong growth
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.
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 Insights: NASDAQ:LULU

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 17.10. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 17.10, LULU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
LULU has a Current Ratio of 2.32. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like 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:

LULU's Return On Assets of 16.61% is amongst the best of the industry. LULU outperforms 96.00% of its industry peers.
With an excellent Return On Equity value of 28.38%, LULU belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 30.24%, LULU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LULU is significantly above the industry average of 10.06%.
The 3 year average ROIC (24.38%) for LULU is below the current ROIC(30.24%), indicating increased profibility in the last year.
LULU has a better Profit Margin (10.89%) than 92.00% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
LULU's Operating Margin of 21.94% is amongst the best of the industry. LULU outperforms 98.00% of its industry peers.
In the last couple of years the Operating Margin of LULU has grown nicely.
Looking at the Gross Margin, with a value of 56.97%, LULU belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.

Why is NASDAQ:LULU a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:LULU has a 7 as its setup rating:

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.

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

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

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

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.