Lululemon Athletica inc. (LULU): Investing In A Time Of Crisis

Lululemon Athletica inc. (NASDAQ:LULU) currently has a daily average trading volume of 1.86M but it saw 2177367 shares traded in last market. With a market cap of 43.79B USD, the company’s current market price of $347.51 came rising about 0.77 while comparing to the previous closing price of $344.86. In past 52 weeks, the stock remained buoying in the range of price level as high as $516.39 and as low as $326.93.

Taking a look at 20-day trading activity of Lululemon Athletica inc. (LULU) gives us an average price of $370.53, while its current price level is -32.70% below from 52-week high level whereas it is 6.29% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $424.25 while that of 200 days or SMA-200 reads an average of $420.41. A closer look into the stock’s movement over the week reveals that its volatility is standing at 2.59% during that period while stretching the period over a month that decreases to 2.56%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 28.79 which implies that the stock is in oversold territory.

The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the Jefferies which reiterated the stock as “Underperform” in its note to investors issued on April 04, 2024, recommending a price target of between $300 and $240 for it. Exane BNP Paribas issued its recommendations for the stock as it downgraded the price target for the stock in the range of between $430 and $415.

Over the week, LULU’s stock price is moving -0.69% down while it is -25.63% when we observe its performance for the past one month. Year-to-date it is -32.03% down and over the past year, the stock is showing a downside performance of -6.71%.

Currently, Lululemon Athletica inc.’s total number of outstanding shares is 121.11M. Company’s return on investment (ROI) stands at 28.78% and return on equity (ROE) at 42.01%. It has a price to earnings ratio (P/E ratio) of 28.46 while having a 21.91 of forward P/E ratio. Stock’s beta reads 1.32. Stock has a price to book (P/B) ratio of 10.36 while price to sale or P/S ratio amounts to 4.55. Its return on asset (ROA) is 24.41% on average.