Can Lulu Stock Break Above $400 Mark After Quarterly Earnings?

Can Lulu Stock Break Above $400 Mark After Quarterly Earnings?

LULU stock price has been volatile and trying to stabilize itself over the months due to large gaps created during the earning periods. The stock has bagged a return of 20.5% to investors in a span of 6 months. 

The stock has been consolidating near the swing high for more than 30 days in a range of 5-7% and is possibly waiting for the quarterly results which may decide the next trend of the retail giant. 

The Analyst rating is a buy with a one-year price target of 420.18. However, the performance depends on the quarterly results which are to be disclosed on 31st August 2023. The Wall Street Analysts are expecting the company to deliver a revenue of 2.17 Billion and a Net Earning is expected to be 2.538 Billion.  

Backtesting the past performance of the company during the earnings, it is observed that the results affect the stocks to open a gap of nearly 10-15%. If the stock repeats the same trend this quarter then the LULU share price may easily surpass the level of $400. 

LULU stock option-chain analysis states that the current implied volatility in the market is 45.6% with an increment of 2.08% in the last trading session. The at-the-money strike price has 232 open contracts on the put side and 126 open contracts on the call side indicating the dominance of buyers at the current level. The PUT/CALL ratio is 1.50 indicating that buyers dominating at the moment as per the data.

LULU Stock Price Consolidating Above 50 EMA Over the Daily Chart

The price action prediction of stock for the short term stands on the neutral side at the moment as the stock is in a strong consolidation leaving the trend unclear. The stock is bullish in the long term and may continue with the same in the short term if breaks above the consolidation. 

However, if the breakout happens on the downside then the stock may reverse the trend. However, the stock has to face 200 EMA on the downside.

The EMAs Showing Strength On The Daily Charts 

The daily LULU stock price chart shows that the price is trading above 200 indicating bullishness in the long term.

The overall Technical Opinion rating including RSI and MACD is signaling a 64% buy with the weakest short-term outlook on maintaining the current direction.

Conclusion

LULU stock price has been fluctuating and consolidating near the swing high for a month. The quarterly results on 31st August 2023 may decide the next trend. Analysts are bullish on the stock with a target of $420.18. The past earnings have caused gaps of 10-15% in the stock price. The short-term outlook is neutral as the stock is in a range. The long-term outlook is bullish if the stock breaks above the consolidation. A downside breakout may change the trend.

Technical Levels

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

Source: https://www.thecoinrepublic.com/2023/08/24/can-lulu-stock-break-above-400-mark-after-quarterly-earnings/