NASDAQ:LULU—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Jun 18, 2024

In this article we will dive into LULULEMON ATHLETICA INC (NASDAQ:LULU) as a possible candidate for growth investing. Investors should always do their own research, but we noticed LULULEMON ATHLETICA INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Analysis for NASDAQ:LULU

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:LULU has earned a 8 for growth:

LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.85%, which is quite good.
The Earnings Per Share has been growing by 27.05% on average over the past years. This is a very strong growth
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 15.65% in the last year.
Measured over the past years, LULU shows a very strong growth in Revenue. The Revenue has been growing by 23.95% on average per year.
The Earnings Per Share is expected to grow by 14.74% on average over the next years. This is quite good.
Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 10.63% on average per year.

ChartMill's Evaluation of 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:

An Altman-Z score of 12.44 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (12.44) than 96.00% 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.
LULU has a Current Ratio of 2.72. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU has a Current ratio of 2.72. This is in the better half of the industry: LULU outperforms 62.00% of its industry peers.
LULU has a better Quick ratio (1.75) than 68.00% of its industry peers.

Profitability Insights: 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:

LULU has a Return On Assets of 23.16%. This is amongst the best in the industry. LULU outperforms 96.00% of its industry peers.
The Return On Equity of LULU (37.47%) is better than 94.00% of its industry peers.
LULU has a better Return On Invested Capital (27.83%) than 96.00% of its industry peers.
LULU had an Average Return On Invested Capital over the past 3 years of 27.36%. This is significantly above the industry average of 10.76%.
The last Return On Invested Capital (27.83%) for LULU is above the 3 year average (27.36%), which is a sign of increasing profitability.
LULU has a Profit Margin of 16.09%. This is amongst the best in the industry. LULU outperforms 94.00% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
The Operating Margin of LULU (22.78%) is better than 98.00% of its industry peers.
The Gross Margin of LULU (58.34%) is better than 80.00% of its industry peers.

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 8 as its setup rating:

Although the technical rating is bad, LULU does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 312.85, 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

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

Keep in mind

This article should in no way be interpreted as advice. 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.