Lululemon Athletica Stock Buy Hold or Sell Recommendation

LULU Stock  USD 389.46  3.32  0.86%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Lululemon Athletica is 'Hold'. Macroaxis provides Lululemon Athletica buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LULU positions. The advice algorithm takes into account all of Lululemon Athletica's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Lululemon Athletica's buy or sell advice are summarized below:
Real Value
426
Target Price
431.91
Hype Value
393.48
Market Value
389.46
Naive Value
352.91
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Lululemon Athletica given historical horizon and risk tolerance towards Lululemon Athletica. When Macroaxis issues a 'buy' or 'sell' recommendation for Lululemon Athletica, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Lululemon Athletica Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Lululemon Stock please use our How to Invest in Lululemon Athletica guide.
In addition, we conduct extensive research on individual companies such as Lululemon and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Lululemon Athletica. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute Lululemon Athletica Buy or Sell Advice

The Lululemon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lululemon Athletica. Macroaxis does not own or have any residual interests in Lululemon Athletica or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lululemon Athletica's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Lululemon AthleticaBuy Lululemon Athletica
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Lululemon Athletica has a Risk Adjusted Performance of (0.08), Jensen Alpha of (0.63), Total Risk Alpha of (0.93) and Treynor Ratio of (0.20)
Macroaxis provides trade recommendations on Lululemon Athletica to complement and cross-verify current analyst consensus on Lululemon Athletica. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Lululemon Athletica is not overpriced, please verify all Lululemon Athletica fundamentals, including its price to sales, short ratio, z score, as well as the relationship between the cash per share and market capitalization . Given that Lululemon Athletica has a price to earning of 80.74 X, we recommend you to check Lululemon Athletica market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Lululemon Athletica Trading Alerts and Improvement Suggestions

Lululemon Athletica generated a negative expected return over the last 90 days
Lululemon Athletica has a poor financial position based on the latest SEC disclosures
Over 93.0% of the company shares are owned by institutional investors
Latest headline from footwearnews.com: Aetrex Teams Up With Bauer Hockey

Lululemon Athletica Returns Distribution Density

The distribution of Lululemon Athletica's historical returns is an attempt to chart the uncertainty of Lululemon Athletica's future price movements. The chart of the probability distribution of Lululemon Athletica daily returns describes the distribution of returns around its average expected value. We use Lululemon Athletica price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lululemon Athletica returns is essential to provide solid investment advice for Lululemon Athletica.
Mean Return
-0.38
Value At Risk
-2.11
Potential Upside
2.09
Standard Deviation
2.40
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lululemon Athletica historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Lululemon Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Lululemon Athletica is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lululemon Athletica backward and forwards among themselves. Lululemon Athletica's institutional investor refers to the entity that pools money to purchase Lululemon Athletica's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Geode Capital Management, Llc2023-09-30
1.4 M
American Century Companies Inc2023-09-30
1.4 M
Wellington Management Company Llp2023-09-30
1.3 M
Artisan Partners Limited Partnership2023-09-30
1.3 M
Massachusetts Financial Services Company2023-12-31
1.1 M
Jpmorgan Chase & Co2023-09-30
993.6 K
Pictet Asset Manangement Sa2023-09-30
889.2 K
Winslow Capital Management, Llc2023-09-30
885.5 K
Bank Of New York Mellon Corp2023-09-30
872 K
Fmr Inc2023-09-30
18.2 M
Blackrock Inc2023-09-30
7.8 M
Note, although Lululemon Athletica's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Lululemon Athletica Cash Flow Accounts

201920202021202220232024 (projected)
Change To Netincome67.8M76.5M79.1M440.2M506.2M531.5M
Investments347K(695.5M)(23.4M)47.8M(654.1M)(621.4M)

Lululemon Athletica Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lululemon Athletica or Textiles, Apparel & Luxury Goods sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lululemon Athletica's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lululemon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.63
β
Beta against NYSE Composite1.95
σ
Overall volatility
2.49
Ir
Information ratio -0.21

Lululemon Athletica Volatility Alert

Lululemon Athletica exhibits very low volatility with skewness of -4.23 and kurtosis of 26.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lululemon Athletica's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lululemon Athletica's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Lululemon Athletica Implied Volatility

Lululemon Athletica's implied volatility exposes the market's sentiment of Lululemon Athletica stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lululemon Athletica's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lululemon Athletica stock will not fluctuate a lot when Lululemon Athletica's options are near their expiration.

Lululemon Athletica Fundamentals Vs Peers

Comparing Lululemon Athletica's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lululemon Athletica's direct or indirect competition across all of the common fundamentals between Lululemon Athletica and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lululemon Athletica or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lululemon Athletica's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lululemon Athletica by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Lululemon Athletica to competition
FundamentalsLululemon AthleticaPeer Average
Return On Equity0.42-0.31
Return On Asset0.22-0.14
Profit Margin0.16 %(1.27) %
Operating Margin0.29 %(5.51) %
Current Valuation48.25 B16.62 B
Shares Outstanding120.89 M571.82 M
Shares Owned By Insiders4.87 %10.09 %
Shares Owned By Institutions93.27 %39.21 %
Number Of Shares Shorted3.46 M4.71 M
Price To Earning80.74 X28.72 X
Price To Book11.60 X9.51 X
Price To Sales5.10 X11.42 X
Revenue9.62 B9.43 B
Gross Profit4.49 B27.38 B
EBITDA2.59 B3.9 B
Net Income1.55 B570.98 M
Cash And Equivalents498.83 M2.7 B
Cash Per Share3.91 X5.01 X
Total Debt1.4 B5.32 B
Debt To Equity0.33 %48.70 %
Current Ratio1.98 X2.16 X
Book Value Per Share33.53 X1.93 K
Cash Flow From Operations2.3 B971.22 M
Short Ratio2.39 X4.00 X
Earnings Per Share12.19 X3.12 X
Price To Earnings To Growth1.47 X4.89 X
Target Price481.14
Number Of Employees38 K18.84 K
Beta1.33-0.15
Market Capitalization49.08 B19.03 B
Total Asset7.09 B29.47 B
Retained Earnings3.92 B9.33 B
Working Capital2.43 B1.48 B

Lululemon Athletica Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lululemon . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Lululemon Athletica Buy or Sell Advice

When is the right time to buy or sell Lululemon Athletica? Buying financial instruments such as Lululemon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Total Stockholder Equity2.7B3.1B4.2B4.4B
Total Assets4.9B5.6B7.1B7.4B

Use Investing Ideas to Build Portfolios

In addition to having Lululemon Athletica in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Personal Services Thematic Idea Now

Personal Services
Personal Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Personal Services Theme or any other thematic opportunities.
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When determining whether Lululemon Athletica is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Lululemon Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Lululemon Athletica Stock. Highlighted below are key reports to facilitate an investment decision about Lululemon Athletica Stock:
Check out Lululemon Athletica Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Lululemon Stock please use our How to Invest in Lululemon Athletica guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running Lululemon Athletica's price analysis, check to measure Lululemon Athletica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lululemon Athletica is operating at the current time. Most of Lululemon Athletica's value examination focuses on studying past and present price action to predict the probability of Lululemon Athletica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lululemon Athletica's price. Additionally, you may evaluate how the addition of Lululemon Athletica to your portfolios can decrease your overall portfolio volatility.
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Is Lululemon Athletica's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lululemon Athletica. If investors know Lululemon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lululemon Athletica listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
4.639
Earnings Share
12.19
Revenue Per Share
75.906
Quarterly Revenue Growth
0.156
Return On Assets
0.2173
The market value of Lululemon Athletica is measured differently than its book value, which is the value of Lululemon that is recorded on the company's balance sheet. Investors also form their own opinion of Lululemon Athletica's value that differs from its market value or its book value, called intrinsic value, which is Lululemon Athletica's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lululemon Athletica's market value can be influenced by many factors that don't directly affect Lululemon Athletica's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lululemon Athletica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lululemon Athletica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lululemon Athletica's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.