Go Long On Lululemon, Stock Is Above Under Armour

  This article was written by Julia Masch, a Financial Analyst at I Know First.

Known for starting the athleisure trend and making yoga pants popular everyday attire, Lululemon Athletica (LULU) has had a great year. After only hitting $90 for the first time in April, the stock skyrocketed to above $120 following the release of its phenomenal Q1 earnings report.

Whereas Lululemon has only recently become a force to be reckoned with, Under Armour (UAA) has been a mainstream competitor in the athletics apparel market for years. However, the company is not as strong as it once was. So which athletics retail stocks are worth buying?

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LULU Stock Price: Lululemon Is Bullish Based On Revenue Growth (LULU)

LULU Stock Price Summary

  • Lululemon has bounced back from its tumble in 2014 after a solid fourth quarter lulu stock priceearnings report.
  • Gross margins have been squeezed in the past few years, but will soon turn around and the cause is easily explainable.
  • Revenue has ample room to increase as the athleisure trend continues to grow in popularity and the company is extremely popular with young females.
  • We are bullish on Lululemon in the one-month and three-month time horizons.

Algorithmic Analysis

Lululemon has solid signal strengths of over 35 in both the one-month and three-month time horizons, indicating the algorithm believes the stock is currently undervalued.

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