Is Lululemon Stock Attractive At $293?

by Trefis Team
-7.77%
Downside
426
Market
393
Trefis
LULU
Lululemon Athletica
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Lululemon’s (NASDAQ: LULU) stock, a company designing and selling athletic and casual apparel in North America, has declined by almost 6% over the last week (trading five days) and currently stands at around $293. In comparison, the broader S&P 500 returned close to a 1% growth over the last five days. Now, is LULU stock poised to fall further? We believe that the company’s stock is still undervalued at about 44x consensus fiscal 2022 earnings and that the stock could grow going forward. Specifically, there is a 61% chance of a rise in LULU’s stock over the next month based on our machine learning analysis of trends in the stock price over the last five years. See our analysis on LULU’s Stock Chances of Rise for more details.

5D: LULU -5.9%, vs. S&P500 1.1%; Underperformed market (7% likelihood event)

  • LULU stock declined 5.9% over a five-day trading period ending 3/5/2021, compared to a broader market (S&P500) rise of 1.1%
  • A change of -5.9% or more over five trading days is a 7% likelihood event, which has occurred 82 times out of 1256 in the last five years

10D: LULU -12%, vs. S&P500 -1.4%; Underperformed market (8% likelihood event)

  • LULU stock declined 12% over the last ten trading days (two weeks), compared to a broader market (S&P500) decline of 1.4%
  • A change of -12% or more over ten trading days is an 8% likelihood event, which has occurred 102 times out of 1240 in the last five years.

21D: LULU -12%, vs. S&P500 0.6%; Underperformed market (8% likelihood event)

  • LULU stock declined 12% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 0.6%
  • A change of -12% or more over twenty-one trading days is an 8% likelihood event, which has occurred 104 times out of 1198 in the last five years

While LULU stock may be attractive, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation of KAR Auction Services vs. MDU Resources Group shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.

See all Trefis Price Estimates and Download Trefis Data here

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