LULU stock: buy or sell
Jan 25th, 2021
LULU stock brief
- Lululemon closed last Friday at $346.37 after barely moving a -0.82%.
- The stock is configuring an uptrend pattern since March 2020, when it bottomed at $128.85. This uptrend marked a 168.82% gain
- Lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth.
Should I buy lululemon stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $LULU stock a buy?
In the current situation of lululemon there is not any eligible buy setup. This doesn't mean we expect a selloff for $LULU in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems
Should I sell lululemon stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. In the same way as when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must follow our own trading strategy. When selling, as well as buying, our setups are very simple to follow but are only applicable for selling shares in your porfolio, not for selling short $LULU stock
As a golden rule, you must never keep an investment that produces greater losses than those expected at the time of purchase. The timing to sell shares must always be determined by the stop-loss (automatic or manual)
Is it time to sell lululemon stock?
In the current situation of lululemon there is not any eligible sell setup, so lululemon stock holders with operations in green can keep their positions
In the last month, just one rating was published for lululemon
|Jan 13th, 2021|
lululemon stock analysis
Since in March 2020, lululemon has been printing an uptrend that so far marked an amazing 168.82%. During this uptrend, the price gave some buy points on the breakouts. Latest pullback was in mid-December, when price bounced at $337.07. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $387.37 and $337.07
Supports and resistances
The current resistance levels are:
The current support levels are:
The price is moving near to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in early December after just crossing to the overbough zone for just one day (weak signal). The RSI reading last Friday was 44.12. Lululemon stock sank a 8.25% since then
lululemon stock price history
Lululemon IPO was on Jul 27th, 2007 at $12.50 per share1. Since then, LULU stock has risen by 2,670.96%, with an average of 205.46% per year. An investment of thousand dollars at that time would have a value of $27,709.60 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for lululemon stock
Nobody knows how much a stock will be priced tomorrow. Banks and financial organisations post their analysis predicting how a stock will performance in the future.
The following table shows the price target published by brokerage institutions in the last 30 days. Again, these predictions are not direct recommendations for small investors and must not be trusted blindly.
There is just one price target available for lululemon that forecasts a price of $400.00.
|Brokerage firm||Price target|
|Jan 13th, 2021|
|Morgan Stanley||$381.00 → $400.00|
Earnings and financials
Lululemon Athletica Inc. ($LULU) reported earnings of $1.16 per share in mid-December, strongly beating the analysts consensus estimate of $0.88 per share. This quarterly report means an earnings surprise of 31.82%. Turnover was $1.1 billion in contrast to $1.0 billion estimated by market consensus.Same quarter one year ago, reported EPS was $0.96, so recently reported EPS means an improvement of 20.83%. Looking at revenues, figures skyrocketed a 21.97% compared to $9.2B year over year.
LULU ($LULU) posts quarterly earnings report next March. Forecasted for this quarter is $2.49, compared to $1.16 that was reported for Q3.
Important note:The thoughts published in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the particular scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning purposes only
|Friday, January 22nd, 2021|
|Day range||$344.42 - $350.17|
|Average true range||$13.01|
|50d mov avg||$355.77|
|100d mov avg||$344.76|
|200d mov avg||$318.51|
|Earnings date||March 25th, 2021|