I think Lululemon Athletica Inc ($LULU) is a Possible Buy. It currently should be $457. Confident Investor Rating: Good
|Company name||Lululemon Athletica Inc|
|Live stock price||[stckqut]LULU[/stckqut]|
|P/E compared to competitors||Fair|
|Return on Assets growth||Poor|
|Income / Rev growth||Poor|
|Weighted ann. stock price increase||Good|
|Confident Investor Rating||Good|
|Target stock price (TWCA growth scenario)||$457.4|
|Target stock price (averages with growth)||$1106.33|
|Target stock price (averages with no growth)||$1015.61|
|Target stock price (manual assumptions)||$584.12|
The following company description is from Reuters: https://finance.yahoo.com/quote/lulu/profile?p=lulu
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits; and athletic wear for female youth. It also provides fitness-related accessories. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations, including seasonal stores; and license and supply arrangements, as well as directly to consumer through mobile apps, and lululemon.com e-commerce site. As of February 2, 2020, it operated 491 company-operated stores under the lululemon and ivivva brands in the United States, Canada, the People’s Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Lululemon Athletica Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Lululemon Athletica Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $296.36
- Growth: 0.2
- Current EPS (TTM): $6.56278207584682
- P/E: 57.6067306901619
- Future EPS Calc: $16.33
- Future Stock Price Calc: $940.73
- Target stock price: $584.12
I hope that this makes you a Confident Investor.