#5 - Lululemon Athletica (NASDAQ:LULU)
Lululemon Athletica Inc. (NASDAQ: LULU) is another company creating a buy-the-dip opportunity for long-term investors. The stock has received 20 downgrades in the last 90 days. The most recent action came from Barclays, which downgraded LULU stock from Outperform to Equal Weight on April 29, 2024.
Once again, the company’s earnings report is what spawned the analysts’ actions. The company beat on the top and bottom lines, but the guidance gave analysts the blues. Lululemon is noticing a slight pullback as consumers continue to wrestle with the impact of inflation.
The short-term concern could be that Lululemon just concluded what has traditionally been its strongest quarter. With the holidays behind it, the company may find it difficult to beat tough year-over-year revenue and earnings comparisons.
On the other hand, with LULU stock down 21.9% in the last three months, the stock is now trading at a more digestible 25x forward earnings. Analysts are also projecting 11% earnings growth, which could add more fuel for future growth.
About Lululemon Athletica
Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.
Read More - Current Price
- $270.76
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $354.94 (31.1% Upside)
