Lululemon Athletica Inc.’s stock price takes a 9.09% plunge, closing at $247.32

Lululemon Athletica Inc. (LULU)

247.32 USD -24.74 (-9.09%) Volume: 9.35M

Lululemon Athletica Inc.’s stock price is currently standing at 247.32 USD, experiencing a significant drop of 9.09% in this trading session with a high trading volume of 9.35M. The performance of LULU stock has been notably weak this year, reflecting a drastic year-to-date percentage change of -51.63%.

Latest developments on Lululemon Athletica Inc.

Lululemon Athletica stock experienced a significant downturn recently, with analysts expressing concerns over new product sales and a potential category slowdown. The company’s stock hit a 52-week low at $257.385, prompting multiple downgrades from analysts, including BTIG lowering their price target to $360. JPMorgan Chase & Co also reduced their estimates after Lululemon paused its new collection, leading to a four-year low for the stock. Despite this, some investors view the depressed valuation as an ideal entry point, while others question if emerging upstarts are challenging Lululemon’s growth. With environmental complaints and mixed Wall Street views, investors are closely monitoring the stock’s movements as it continues to face challenges in the market.

Lululemon Athletica Inc. on Smartkarma

Analyst coverage of Lululemon Athletica on Smartkarma shows a mix of sentiment. Value Investors Club recommends shorting LULU US when share price is above USD410 with a price target of USD300 before the next earnings date in May 2024, citing potential revenue consensus misses. On the other hand, Baptista Research leans bullish, highlighting Lululemon’s 10% increase in total revenue for the first quarter of 2024, driven by growth in international markets like China. MBI Deep Dives also takes a bullish stance, noting that Lululemon’s recent earnings should help ease concerns raised since the previous quarter. Investment Talk, however, takes a bearish view, pointing out Lululemon’s decelerating revenue growth and recent stock performance.

A look at Lululemon Athletica Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Lululemon Athletica has a positive long-term outlook. With high scores in Growth and Resilience, the company is expected to continue expanding and weathering any potential challenges in the market. This indicates that Lululemon is well-positioned for sustainable growth and is capable of adapting to changing market conditions.

Although Lululemon Athletica scored lower in Value and Dividend, its strong scores in Growth, Resilience, and Momentum suggest that the company’s overall outlook remains favorable. With a focus on designing and retailing athletic clothing for various fitness activities, including yoga and running, Lululemon continues to attract customers worldwide. Overall, Lululemon Athletica is poised for continued success in the athletic apparel industry.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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