1 Magnificent Growth Stock Down 21% to Buy Right Now

The busiest part of earnings season may be past, but there are still businesses that are reporting fresh financials. One such company, which had been experiencing strong momentum, just issued an update that disappointed shareholders.

I'm talking about Lululemon Athletica (NASDAQ: LULU). While it beat Wall Street's earnings and revenue estimates, investors weren't pleased with some other data points. The top apparel stock was down 16% the day after the announcement, and it has dropped around 20% year to date (as of this writing). That seriously lags the 9% gain of the Nasdaq Composite.

For the three-month period that ended Jan. 28, which was Lululemon's fiscal 2023 fourth quarter, the business reported revenue of $3.2 billion (up 16% year over year) and diluted earnings per share (EPS) of $5.29 (up 20% when adjusting for the impairment charge a year ago). If this was all the information Lululemon provided, you'd assume that the company was firing on all cylinders. These headline figures exceeded Wall Street expectations.

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Source Fool.com