Why Lululemon's Stock Is Worth the Risk
lululemon athletica's (NASDAQ: LULU) stock has surged roughly 650% over the past five years as the high-end yoga and athleisure apparel maker has repeatedly impressed investors with its robust sales growth.
It expanded its brick-and-mortar footprint as other apparel retailers shut down, it maintained its premium brand appeal even as cheaper competitors entered the market, and it locked in customers with free yoga classes and community events.
But after those big gains, investors might be wondering if Lululemon's stock is getting overheated at more than 50 times forward earnings. That valuation might seem high for an apparel retailer, but I believe that premium is justified, for three simple reasons.
Source Fool.com
