Lululemon Athletica Inc. generally known as Lululemon is a Canadian sportswear retail brand. The company has its headquarters in British Columbia but it was incorporated in Delaware, United States. It was founded in 1998 and it has 574 stores internationally and sells online too.
For Lululemon shares, 96.13% of the float is held by institutions and the largest shareholder of the company is FMR, LLC with 14.49% of shares. Only 4.85% of the shares of the company are held by the insiders, which is concerning for the stock.
The LULU share price has declined by -7.98 USD in the last trading session and currently, the share is trading at $383.90. The current ROE of the company is 30.89%. The company has a neutral debt/equity ratio with a P/E ratio of 49.41. It makes the LULU stock a very good share to buy for the long term as the investors are willing to pay higher prices for the stock.
The net profit for Q3 2023 for the LULU share has advanced by 17% as compared to the year-on-year result resulting in $1.11 Billion in trailing 12 months. It also follows an advance in accounts receivable and inventory.
Lululemon Athletica Inc. Stock Performance Analysis
Lululemon’s revenue has been consistently advancing over the last four years and the company has managed to maintain its profitability over the years. The company made a net income of 10.54% out of the total revenue of $8.11 Billion for the year 2022. The debt of the company has also been constant for many years and has slightly increased to $1.07 Billion in 2022. Therefore, the fundamentals of the company are reliable and support for the growth of the company.
LULU Share Technical Analysis
The share price is consistently making higher highs on the weekly timeframe, leading to the formation of the ascending triangle. The LULU share price has also broken out above the same pattern. It indicates bullishness in the market and can lead the price to higher levels.
The 50-day and the 200-day Exponential Moving Averages are trading in a golden cross on the charts following an uptrend for a long time.
The RSI value for the LULU stock is trading in an uptrend, following higher highs and a rising wedge pattern. It is also above the 50-level making the stock price more bullish.
Technical Overview of LULU Stock
Considering the technicals on the weekly timeframe, the stock is in an uptrend as the majority of the indicators are bullish on charts indicating a buy signal. In spite of bullish EMAs, major oscillators are neutral. The MACD and Momentum are bearish on the charts. The overall data represents bullishness in stock price.
Conclusion
The company has consistently sustained its net profit year-on-year and the Debt of the company is also constant. The LULU stock is trading in a bullish market structure and has broken out above the triangle pattern following a bullish EMA and RSI on weekly charts.
Therefore, the stock price can advance to higher levels and may hit an all-time high as the next resistance resides at the same levels.
Technical Levels
- Support levels for the LULU share are – $250.00 and $285.00
- Resistance levels for the LULU share are – $410.00 and $486.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/22/lulu-price-forecast-lulu-shows-potential-of-hitting-new-highs/