Lululemon’s Stock Gained 10%, Room For More?

by Trefis Team
-2.53%
Downside
404
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393
Trefis
LULU
Lululemon Athletica
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Lululemon’s stock (NASDAQ: LULU), a company designing and selling athletic and casual apparel, has increased 10% over the last twenty-one trading days (one month) and currently stands at around $403. It should be noted that the broader S&P500 returned only a 3% growth during the same period. Lululemon did a good job of building out its digital distribution channel during the pandemic, which helped it boost brand awareness among consumers. Going forward, the company has a new opportunity to capture people coming back to brick-and-mortar retail once the Covid threat abates, particularly given its strong customer loyalty.

Now, is LULU stock poised to grow further? We believe that the company’s stock remains fundamentally overvalued, but still, could see further gains as has momentum on its side. Specifically, there is a 63% chance of a rise for LULU stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on LULU Stock Chances of Rise for more details.

Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last 10 year data

[1] 1.5% or higher return during five-day period in 933 times out of 2517; Stock rose in the next five days in 518 of these 933 instances

[2] 6.8% or higher return during ten-day period in 444 times out of 2517; Stock rose in the next ten days in 276 of these 444 instances

[3] 9.6% or higher return during twenty-one-day period in 547 times out of 2516; Stock rose in the next twenty-one days in 342 of these 547 instances

It is helpful to see how its peers stack up. LULU Stock Comparison With Peers to see how Lululemon compares against peers on metrics that matter.

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