What's Wrong With Lululemon Stock?
At one point in time, (NASDAQ: LULU) was a darling of the stock market, loved by investors, with shares trading up over 3,000% from its initial public offering (IPO) around 20 years ago. No longer. The stock has collapsed and it now trades at one of its lowest valuations ever, driven by a narrative around increased competition in athleisure apparel and declining category sales in North America. Lululemon stock now trades down 64% from all-time highs, its worst drawdown since the Great Recession in 2008-09.
Let's dissect the problems with Lululemon's business today and see if this discounted price makes the stock a buy.
Image source: Getty Images.
Source Fool.com
Lululemon Athletica Inc. Stock
€135.40
-0.590%
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 33 Buy predictions and 5 Sell predictions.
With a target price of 259 € there is a hugely positive potential of 91.29% for Lululemon Athletica Inc. compared to the current price of 135.4 €.
