NASDAQ:LULU—A High-Growth Stock Gearing Up for Its Next Upward Move.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if LULULEMON ATHLETICA INC (NASDAQ:LULU) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted LULULEMON ATHLETICA INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Analysis for NASDAQ:LULU

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:LULU scores a 8 out of 10:

• LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.03%, which is quite impressive.
• Measured over the past years, LULU shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.13% on average per year.
• The Revenue has grown by 25.17% in the past year. This is a very strong growth!
• The Revenue has been growing by 25.08% on average over the past years. This is a very strong growth!
• LULU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.79% yearly.
• LULU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.88% yearly.

Assessing Health Metrics for NASDAQ:LULU

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:LULU has earned a 9 out of 10:

• LULU has an Altman-Z score of 15.91. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
• LULU's Altman-Z score of 15.91 is amongst the best of the industry. LULU outperforms 100.00% of its industry peers.
• There is no outstanding debt for LULU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• LULU has a Current Ratio of 2.40. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:LULU was assigned a score of 9 for profitability:

• LULU has a Return On Assets of 16.81%. This is amongst the best in the industry. LULU outperforms 97.96% of its industry peers.
• With an excellent Return On Equity value of 28.51%, LULU belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 29.14%, LULU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• LULU had an Average Return On Invested Capital over the past 3 years of 24.38%. This is significantly above the industry average of 10.72%.
• The 3 year average ROIC (24.38%) for LULU is below the current ROIC(29.14%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 11.40%, LULU belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
• LULU's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 22.12%, LULU belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
• LULU's Operating Margin has improved in the last couple of years.
• LULU's Gross Margin of 56.75% is amongst the best of the industry. LULU outperforms 81.63% of its industry peers.

How does the Setup look for NASDAQ:LULU

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:LULU is 7:

Although the technical rating is only medium, LULU does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 395.05, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of LULU for a complete fundamental analysis.

Check the latest full technical report of LULU for a complete technical analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.