Is Lululemon Stock Overpriced?

My calculation finds that LULU is relatively fairly valued/slightly overvalued based on a $238.31/share target price.

Is Lululemon stock undervalued?

Lululemon Athletica secures a last-minute Real Value of $364.73 per share. The latest price of the firm is $286.41. At this time, the firm appears to be undervalued.
36.8 B.

Is Lululemon a good stock investment?

The current stock price offers “an attractive entry point,” Greenberger said, recommending that “long-term oriented investors take another look at this quality asset on sale.” Greenberger upgraded her rating of Lululemon to Overweight from Equal-weight, but lowered her target for the stock price to $303 from $339.

Will LULU stock go up?

The 28 analysts offering 12-month price forecasts for Lululemon Athletica Inc have a median target of 376.50, with a high estimate of 505.00 and a low estimate of 200.00. The median estimate represents a +18.80% increase from the last price of 316.91.

Why is the Lululemon stock low?

Lululemon stock has been dropping, because the spread of the Omicron variant has hurt its topline and bottom line for the fourth quarter of fiscal 2021.

Should I invest in Nike or Lululemon?

From a value investing perspective, NKE is the more appealing stock, trading at 22.5 times forward earnings vs. a forward P/E of 29.2 for LULU; the margin isn’t as wide as you might expect given their relative ages (LULU held its IPO in 2007, NKE in 1980). In the long term, Lululemon is growing faster than Nike.

Is Nike worth more than Lululemon?

Nike vs Lulemon – Cost
On the contrary, Nike has more affordable prices. Its swoosh leggings for females span from about $24.20 as the introductory price to about $121.23. On the other hand, Lululemon has its lowest price for Wunder Under Crop High Rise, going for $54.03.

Who is Lululemon’s biggest competitor?

Let’s take a look at Lululemon’s most aggressive competitors and alternatives, giving the company a solid competition.

1. Athleta – a Gap subsidiary. In 2008, Athleta was bought by The Gap for $150 million.
2. Victoria Sports.
3. Under Armour.
4. Prana – a Columbia sportswear subsidiary.
5. Nike.
6. Adidas.
7. Puma.
8. Sweaty Betty.

Does LULU pay a dividend?

Dividend Overview. LULU does not currently pay a dividend.

Who is Lululemon target market?

Lululemon’s demographic profile is mainly fueled by women between the ages of 16–35. The current target market for Lululemon is men and women in the upper middle class between the ages of 18 and 35 with a fitness mindset. Approximately 41% of the world population is between the ages of 18 and 35.

Will Nike stock go up?

Based on 27 Wall Street analysts offering 12 month price targets for Nike in the last 3 months. The average price target is $128.87 with a high forecast of $156.00 and a low forecast of $100.00. The average price target represents a 11.03% change from the last price of $116.07.

Is Lululemon 2022 worth it?

Lululemon sees sales in fiscal 2022 in a range of $7.61 billion to $7.71 billion, up from a prior forecast of $7.49 billion to $7.62 billion. Analysts were looking for $7.54 billion, according to Refinitiv data.

Is Lululemon still successful?

Lululemon’s success can’t be denied
Over the past five fiscal years, Lululemon’s revenue and profit have increased 174% and 221%, respectively. And its operating margin has expanded from 18.3% to 22% during that time. The brand has proven to be incredibly strong, too.

Is Lululemon a profitable company?

During the period, Lululemon notched up a gross profit of $1.2bn (£916m), or 58.1% of net revenue, compared to $1bn (£763m), or 58.6% of net revenue in the fourth quarter of 2020. The brand promised to continue to be “strategic” on pricing and not take any “drastic” moves.

Is Nike stock overvalued?

Considering the price multiples, again Nike is very overvalued since its multiples are far higher than those of its competitors in the same sector.

Is Nike stock undervalued?

Nike Inc secures a last-minute Real Value of $149.38 per share. The latest price of the firm is $116.07. At this time, the firm appears to be undervalued.
USD 116.07 1.97 1.73%

How are Nike and Lululemon similar?

Nike and Lululemon are both strong brands with similar valuations and healthy financials. Also, both companies are loved by consumers today.

Why is Lululemon a good stock?

One stock that might be an intriguing choice for investors right now is Lululemon Athletica Inc. LULU. This is because this security in the Textile – Apparel space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

How much will the Lululemon shoes cost?

Last week, Lululemon released four different women’s shoes, including ones for running, cross-training and post-workout. Prices range from $138 and $148. A men’s collection is in the works for 2023.

Do Lululemon shorts run small?

lululemon bottoms typically run true to size. However, some people have reported that their bottoms ran larger due to a particular fabric or style. It’s safe to stay that you can usually order Lululemon bottoms in your true size and expect a decent, if not, perfect fit.

Is Lululemon a monopoly?

Lululemon – LULULEMON Market Structure Lululemon is under monopolistic market structure.