Lululemon fell almost 18% in one day.
Big reasons:
• They cut their full-year forecast again.
• U.S. sales only grew 1%, which is weak.
• Tariffs are hitting profits, costing them about $240M this year.
• Analysts rushed to downgrade. Some even put price target at $150.
That’s why the stock sank. But at today’s price, valuation looks much lower than before. If sales improve or holiday season is strong, it could bounce.
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- Pablo_Chua·09-08TOPover hyped consumer discretionary goods buy below fair value of $150LikeReport
- JIANG_LIM·09-06its trading around 12x PE now, way below its 5-yr average of 30+. so by that measure it does look oversold. in my personal view, short-term it can still drift lower if sentiment stays bad. longer-term, if holiday sales or new products click, the stock has room to re-rate higher. I lean toward bullish.1Report
- Yourstruly·09-07I’ve noticed a lot of users aren’t technically aware, the stock is a buy.LikeReport
- Frosty4ever·09-06has it been oversold? lulu has come way off 52 week high of usd423.LikeReport
- okalla·09-07Great article, would you like to share it?1Report
