|Bid||149.05 x 900|
|Ask||149.30 x 1300|
|Day's Range||147.50 - 149.36|
|52 Week Range||77.97 - 164.79|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||52.32|
|Earnings Date||Dec 4, 2018 - Dec 10, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||162.83|
Shares of Lululemon (NASDAQ:LULU) had a red-hot start in 2019. Over a month-long stretch from late December to late January, LULU stock rallied in a nearly straight line by 30%-plus from $113 to over $150.Source: Shutterstock The rally of Lululemon stock was sparked by an easing of fears about a looming recession and the company's holiday numbers which underscored that its brand is still on fire.Since then, LULU stock, currently trading around $149, has been flat. That isn't great news. Over the past month, the S&P 500 has risen more than 4%. Lululemon stock is down 2.5% during that same stretch. Over six points of relative under-performance isn't a great thing.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 High-Growth Stocks to Buy Now for Monster Returns But it also isn't surprising, nor is it anything to worry too much about. What happened to LULU stock is very simple. The stock got way undervalued during the selloff of late 2018. Investors bought the dip of LULU stock. Now it's fully valued, and it doesn't look poised to rise much in the near-term.But the long-term upside of Lululemon stock is compelling. LULU stock is marching towards $200, thanks to the broadening of the company's product portfolio and increased demand for its apparel. But a lot of the near-term upside potential of Lululemon stock is priced into the shares.As a result, over the next few weeks and potentially even months, LULU stock won't rise much due to its full valuation. Afterwards, Lululemon stock will resume its rally towards $200. But the stock needs a bit of a breather before it does so, and that's exactly what's happening right now. LULU's Long-Term Fundamentals Remain HealthyThe long-term bull thesis on LULU stock remains healthy. Namely, Lululemon still has all the necessary ingredients to turn into a smaller version of Nike (NYSE:NKE) in the men's and women's athletic and casual-wear categories.Those ingredients include an exceptionally loyal, rapidly growing customer base, second-to-none brand value, high product quality, and consumers' willingness to pay a premium for its products. Of equal importance, Lululemon is breaking out from its niche focus on women's yoga, and is now expanding into men's apparel, casual-wear and footwear. In those categories, Lululemon is finding just as much success as it found in its core market.Here's the kicker: Nike has had nearly $40 billion of sales over the past twelve months. During that same stretch, Lululemon has reported just a hair over $3 billion of sales. Thus, the whole "Lululemon has the potential to be a mini-Nike" narrative is still in its early innings.As long as LULU maintains high brand value and continues to expand its product portfolio and geographic reach, then Lululemon's revenue should continue to increase 10%-15% each year.That level of revenue growth -- coupled with gross margin expansion spurred by pricing power and variable-spending leverage as a result of high revenue growth -- should drive the company's earnings per share towards $8.50 by fiscal 2023. Based on Nike's approximate forward price-earnings multiple of 25, that equates to a fiscal 2022 price target of over $210 for LULU stock. The Near-Term Upside of Lululemon Is Capped by Its Full ValuationWhile LULU stock has upside to over $200 over the next few years, it won't get there in the near-term.Based on Lululemon's fundamentals, a realistic fiscal 2022 price target for Lululemon stock is just over $210. If we take that price target and discount back by 10% per year, we get a fiscal 2018 price target of roughly $145. That is about where LULU stock trades todayThus, based on the company's fundamentals, Lululemon stock is fairly valued here and now. Moreover, LULU stock has fallen flat in the $150 to $160 range over the past few months, implying that investors' appetite to buy LULU stock is clearly weak above $150 for the time being. The Bottom Line on LULU StockLULU stock is a long-term winner, powered by the fact that Lululemon is expanding its reach and product assortment which will likely enable it to turn into a mini-Nike. But the near-term upside of Lululemon stock is capped by its full valuation. As a result, investors should expect the stock to trade sideways for the next several weeks before taking its next leg higher towards $200.As of this writing, Luke Lango was long NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post Here's Why Lululemon Stock May Trade Sideways in the Near-Term appeared first on InvestorPlace.
Nike and the Injury Heard Round the WorldWhy Nike stock is falling todayNike (NKE) stock was down 1.6% in premarket trading today in reaction to news that Duke University’s basketball star Zion Williamson injured his left knee after his foot tore
Lululemon Stock Fell on Rating Downgrade from Instinet(Continued from Prior Part)Forward valuationAs of February 19, Lululemon (LULU) was trading at a 12-month forward PE (price-to-earnings) ratio of 33.5x. The forward valuation multiple has
Lululemon Stock Fell on Rating Downgrade from Instinet(Continued from Prior Part)Top-line growth so farLululemon’s (LULU) revenue increased 24.9%, 24.5%, and 20.8% in the first, second, and third quarters of fiscal 2018, respectively. Overall, the
Lululemon Stock Fell on Rating Downgrade from InstinetRating downgrade Lululemon (LULU) stock fell 2.3% on February 19 after Instinet downgraded the stock from “buy” to “neutral” over valuation concerns. Instinet, however, raised its price
Analyst Simeon Siegel downgraded Ulta from Buy to Neutral and raised the price target from $305 to $311. Ulta and Lululemon are two of the best stories in retail, but their share prices reflect it, Siegel said in a Tuesday note.
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains breaks down Under Armour's (UAA) Q4 and fiscal 2018 financial results and then dives into what's next for the athletic apparel firm as its North American struggles continue.
Shares of (LULU) Athletica (LULU) and (ULTA) (ULTA) are trading down on Tuesday, following a downgrade from Nomura Instinet’s Simeon Siegel, who’s concerned that the stocks have rallied too fast despite strong growth outlooks. Not surprisingly, Lululemon and Ulta have benefited. Beauty has long been hailed as a bright spot in the tumultuous retail space, with Ulta’s loyalty program and in-store support held up as examples of how bricks-and-mortar retailers can remain relevant.
Shares of Lululemon Athletica Inc. dropped 2.2% in morning trade Tuesday, after the yoga gear maker was downgraded at Instinet, which cited concerns over valuation given the recent run up in price. Analyst Simeon Siegel cut his rating to neutral from buy, but raised his price target to $157 from $140. He said that while he believes Lululemon is one of the "best stories in retail," with his research suggesting industry-leading same-store sales growth will likely continue, he also believes the recent surge in the stock price already reflects that optimism. The stock has run up 31% since Dec. 24, and 82% over the past 12 months, while the SPDR S&P Retail ETF has slipped 2.1% the past year and the S&P 500 has gained 1.6%. "Looking further out, we have every expectation that management will raise their $4 billion revenue target, however, we think that at this point that is a consensus belief and one baked into the current share price," Siegel wrote in a note to clients. He also downgraded Ulta Beauty Inc. to neutral from buy, for similar concerns over valuation.
Canada Goose Stock Fell 12.9% despite Strong Q3 ResultsThird-quarter results On February 14, Canada Goose (GOOS) (GOOS.TO) stock fell 12.9% on the NYSE. The company reported impressive results for the third quarter of fiscal 2019 and raised its
Shares of Canada Goose (GOOS) plummeted over 13% through mid-afternoon trading Thursday, despite posting better-than-projected quarterly financial results. Therefore, the downturn might have been caused by broader retail worries.
Fashion trends come and go, but one trend that has bucked the cycle and remained atop the global fashion category for several years now is the athletic apparel trend, boosting athletic stocks.Broadly speaking, consumers have gravitated increasingly towards athletic apparel as the athletic and casual fashion categories have converged on one another to create the now immensely popular athleisure space. According to Piper Jaffray's Taking Stock with Teens Survey, the athletic apparel category has benefited from consistently rising mind-share ever since 2008.It's now 2019, and that mind-share is still growing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, the rise of the athletic apparel category is starting to look more like a secular consumer lifestyle trend, than a cyclical fashion trend. As such, the athletic apparel stocks which have run higher over the past several years thanks to this trend, should continue to run higher over the next several years, too, as the trend persists. * 9 U.S. Stocks That Are Coming to Life Again With that in mind, let's take a look at seven athletic stocks that are ready to run higher.Source: Shutterstock Nike (NKE)At the top of the athletic apparel category is Nike (NYSE:NKE).Nike is the unchallenged leader in this market, and that has been the case for several decades now. To be sure, competitive threats arise in the space every few years to challenge Nike's dominance. But all these really do is embolden Nike. NKE stock allocates a bunch of resources to growth-related initiatives, squashes the competition and expands its dominance.This will remain true for the foreseeable future. Every trend is moving in Nike's favor right now, including robust growth in China, margin improvements, an impressive pace of product innovation, market expansion into men's yoga apparel and big contract wins to supply the MLB with on-field jerseys and equipment. So long as these trends remain favorable, Nike stock will remain on a winning trajectory. Source: Shutterstock Foot Locker (FL)If there is one way to play the Nike trend without buying Nike stock, then it is buying shares of Foot Locker (NYSE:FL) instead.For all intents and purposes, Foot Locker is Nike's retailer. About 70% of the product sold at Foot Locker stores and online is Nike product. This is why as Nike has regained dominance in the athletic apparel industry over the past few quarters, Foot Locker's numbers have materially improved, and FL stock has gone from $40 to $60. * Buy These 5 Stocks to Play the Megatrend of the Century This correlated uptrend in FL and NKE stock will persist. To be sure, Nike is pushing direct sales and narrowing its wholesale channel portfolio. But, that narrowing does not include any cuts to Foot Locker, since Nike sees Foot Locker as an extremely valuable channel to reach customers. Thus, the Nike and Foot Locker relationship will remain healthy for a lot longer, and that will power both of these stocks higher.Source: Shutterstock Lululemon (LULU)The hottest name in the athletic apparel space right now is Lululemon (NASDAQ:LULU).Lululemon has made a name for itself over the past decade as the top provide of high-quality women's yoga apparel. LULU killed it in that industry and developed second-to-none brand equity and customer loyalty among their core demographic (female yogis). Now, Lululemon is leveraging that supercharged brand equity and customer loyalty to significantly expand their product assortment and demographic reach. This includes jumping into the men's business and expanding well beyond the yoga space.Overall, Lululemon is currently in the process of shifting from a niche yoga apparel brand to a broad athletic apparel brand. Because the company has established a strong reputation for itself for developing high-quality clothing, this shift is playing out smoothly for the company.Net result? Dramatically higher revenues and profits. This trend will persist, since Lululemon is still so small relative to other athletic apparel giants. As such, LULU stock should remain in a solid uptrend for the foreseeable future.Source: Shutterstock Skechers (SKX)One of the most underrated athletic apparel brands in the world is Skechers (NYSE:SKX).Most athletic apparel brands, like Nike or Lululemon, fight to be the coolest and trendiest brand in the space. Skechers doesn't really care about that. Instead, this company has consistently emphasized price and comfort over coolness and style. This emphasis has made the brand unpopular among trend-oriented consumers, but has also made the brand super popular among consumers who -- much like the brand -- want comfort over style.As it turns out, this market is pretty big, and Skechers is dominating it on a global scale. That is why this company has been a solid high-single-digit and up revenue grower for the past several years. But, SKX stock has failed to rally alongside revenues because margins have been an issue, and profit growth has been diluted. That margin headwind appears to be turning a corner. * 10 Best Dividend Stocks to Buy for the Next 10 Months Last quarter, for the first time in a long time, Skechers grew revenues and profits side-by-side. If the company can maintain this new trend, then SKX stock will continue to rally in a big way given its still depressed valuation (just 17x forward earnings).Source: Jose Carlos Cortizo Perez via Flickr Athletic Stocks to Buy: Puma (PUMAF)One of the largest athletic apparel brands in the world is Puma (OTCMKTS:PMMAF), yet the company is hardly talked about in mainstream media. That's about to change.For the first time in over twenty years, Puma is making moves in the ultra-valuable basketball market. These moves aren't small, either. Puma has named rapper/celebrity Jay-Z -- someone who has a lot of clout in basketball circles -- as creative director of Puma Basketball. They've also signed DeAndre Ayton and Marvin Bagley -- the top two picks in last year's NBA draft and potential future all stars -- to multi-year contracts. NBA players DeMarcus Cousins and Rudy Gay are also new Puma athletes.Overall, Puma is starting to make some noise in the too-big-to-ignore basketball market. With Jay-Z on board, it shouldn't be too hard to lure a few big names over to the brand. As such, this basketball revolution at Puma is just getting started, and as it plays out over the next several quarters and years, Puma's revenues, profits and stock price should all rise.Source: Shutterstock Dick's Sporting Goods (DKS)Sporting goods stores were supposed to be a dying breed. However, one company that has managed to hold its own is Dick's Sporting Goods (NYSE:DKS).As consumers have shifted online and athletic apparel brands have shifted to focus on direct-sales channels, sporting goods stores have been increasingly cut out of the athletic apparel retail landscape, and many have been forced to shutter their doors. But, not Dick's Sporting Goods. Instead, DKS went through a rough patch, has come out the other side and is now reporting numbers that don't at all indicate bankruptcy any time soon.Over the next few years, Dick's Sporting Goods will undergo a Best Buy (NYSE:BBY)-type renaissance. Electronics stores were also a dying breed earlier this decade. But, Best Buy survived the electronics store apocalypse, came out the other side stronger than ever, and gobbled up all the excess market share, which led to robust profit growth and huge gains for BBY stock. * 7 Reasons You Want Boeing Stock in Your Portfolio The same thing will happen with Dick's Sporting Goods in the sporting goods industry over the next few years. As such, now looks like a good time to buy into a relatively depressed stock before it moves to new highs.Source: McArthurGlen Designer Outlets via Flickr (modified) Columbia (COLM)Often left out of the discussion about athletic apparel brands is Columbia (NASDAQ:COLM). But Columbia's torrid growth as of late makes the company hard to ignore.Columbia is coming off a quarter and full year that saw record sales, gross margins, operating profits, net profits and earnings per share. Last quarter, revenues rose 17% and operating profits rose 34%. Last year, revenues rose 11% and operating profits rose 30%. Next year, revenues are expected to rise in the mid-to-high-single-digit range, while gross margins are expected to expand and profits are guided to head higher, too.Overall, Columbia is simply on fire right now. The stock isn't terribly expensive, around 26x forward earnings, a level which has been historically normal for COLM stock. Investor sentiment is bullish. So is analyst sentiment. The technicals are healthy. Putting it all together, it looks like COLM stock can and will continue to head higher from here.As of this writing, Luke Lango was long NKE, FL, LULU, SKX, and BBY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post 7 Athletic Stocks That Could Run Higher appeared first on InvestorPlace.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Lululemon Athletica Inc. (NASDAQ:LULU), a large-cap worthRead More...
Shares of athletic apparel giant Nike (NYSE:NKE) have been on fire for over a year now. Back in late 2017, everyone was worried about rising competition and global athletic market saturation diluting the company's near- and long-term growth prospects. Those worries have since completely disappeared, as Nike has leveraged high-speed product innovation and targeted investments to squash rising competition and re-accelerate growth to multi-year high levels. * 10 Stocks That Every 20-Year-Old Should Buy Click to Enlarge Source: Alessio Jacona via Flickr Consequently, Nike stock has zoomed from $50 to $80 over the past sixteen months. There are many reasons to believe this run in Nike stock isn't over just yet. Growth has turned around in the critical North America region and is only accelerating higher. International growth remains red hot, especially in China, a region where growth should be slowing, but isn't. Margins are racing higher. The current pace of product innovation is relentless and unprecedented. The controversial Colin Kaepernick ad appears to have done much more good than bad and is energizing a young core consumer base in the U.S.Plus, Nike just won a contract to supply the MLB with on-field jerseys and equipment, a big win which expands the company's presence in the baseball market. But one catalyst which has yet to be mentioned by mainstream media could be a complete game-changer: Nike's recent entry into the men's yoga market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe men's yoga department over at Nike is small. But it's growing -- and that's a big deal. The yoga market is a huge and on-trend global market that is arguably the last frontier in the athletic apparel space that Nike has yet to conquer. Entry into this market -- both on the men's and women's side -- could yield huge long-term benefits for both Nike and Nike stock.As such, investors should add "entry into the yoga market" as yet another reason to stick with Nike stock in 2019. The Yoga Market Is Huge and On-TrendThere are two things which make the global yoga market very valuable and one worth pushing into: it's already very big and it's only rapidly growing.Depending on who you ask, the yoga market in the U.S. is around $12 billion to $16 billion in revenues. Just over 10% of Americans are active "yogis", about 33% of Americans have done yoga at least once and the number of active yogis has grown by 50% over the past several years (the men's market has actually more than doubled during that same time frame). This big participation growth has led to consistent mid-single-digit and often much higher revenue growth across the entire U.S. yoga industry over the past several years.Meanwhile, on the global side of things, the global yoga market measures in at $80 billion in revenues. That revenue base is expected to grow by 6% per year over the next several years.Thus, the global yoga market is huge and rapidly growing. At scale, it's easy to see this market growing to $100 billion. Nike's revenues over the past twelve months are under $40 billion. It has zero presence in the yoga market.Hence, it's easy to see how gaining just 5% of this market at scale could boost revenues by over 10%. It's also a high-margin business, so it could add 10%-plus to profits too. That's a big deal for Nike and Nike stock. Nike Will Make NoiseBroadly speaking, it makes sense that Nike wants to enter the yoga market. It's huge. It's rapidly growing. And it's the last frontier in the athletic apparel space that Nike has yet to conquer.But will Nike be successful in penetrating this market?Yes. To be sure, heavyweights in the industry like Lululemon (NASDAQ:LULU) have a firm grip on the women's side of the market. But, the men's side is largely up for grabs, largely because the men's market has historically been too small and too niche to worry about at scale. But that's changing. The number of men practicing yoga in the U.S. has more than doubled over the past several years -- and almost one out of every 3 yogis in the U.S. is male.Thus, the men's yoga market is finally coming into its own. No single yoga apparel company has a firm grip on that rapidly growing audience.My prediction? Nike will win the men's yoga market and then use that success to grow share in the women's category. In terms of mind-share among young male consumers, Nike is second to none. The company is certainly far above Lululemon and any other yoga brand. Thus, while current male yogis may have an affinity for Lululemon, new male entrants to the market will likely turn towards Nike. That will help Nike establish a strong presence in the men's yoga market, which the company can leverage to expand share in the women's category.Overall, thanks to the robust growth of men's yoga and Nike's favorable positioning among male consumers, Nike is in a optimal position to win valuable share in the rapidly growing men's yoga market. As stated earlier, that's a big deal for Nike stock. Bottom Line on NKE StockNike stock has been on fire for over a year. It will remain on fire for the rest of 2019. From innovation pipeline to professional league partnerships, there are a lot of things to like about the Nike story. * The 7 Best Video Game Stocks to Power Up Your Portfolio! One of those things is this company's recent entry into the men's yoga market. This is a huge market. It's also rapidly growing, and Nike is in a favorable position to rapidly gain share. As such, yoga market share advances will move the needle for Nike's revenues and profits over the next several quarters and years. That will ultimately keep Nike stock on a winning path.As of this writing, Luke Lango was long NKE and LULU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post Menas Yoga Is Yet Another Reason to Buy Nike Stock appeared first on InvestorPlace.
Shares of Under Armour (UAA) surged nearly 7% Tuesday after the company surpassed fourth-quarter earnings and revenue estimates. Now let's break down the sportswear company's Q4 results and see what might be next for Under Armour stock.
Lululemon Athletica is IBD Stock of the Day, breaking out Tuesday from a bullish base. The yoga apparel maker joins athletic apparel rivals Nike and Under Armour.
Major stock indexes held solid gains in afternoon trading Monday. Stocks today on the move included FANG stock Netflix, Under Armour and Lululemon.
Under Armour executives, led by CEO Kevin Plank, painted a rosy picture during a conference call with analysts.
The increase in stock market volume Tuesday suggested funds were actively buying. Trade declined Friday and Monday.