LululeMon Athletica today
LululeMon Athletica
- 52-week range
- $ 226.01
▼
$ 423.32
- P/e ratio.
- 19.02
- Value is valuable
- $ 342.61
The retail sector is undoubtedly one of the most affected areas of the stock market today, especially if the uncertainty of trade tariffs continues to beat the market from all sides. This uncertainty made it difficult for companies accurately predict their income guide Since knowledge of where costs may turn out can significantly disrupt financial models advanced forward.
Nevertheless, it is there that the possibilities enter the game for investors, since the market will be directly demonstrate this uncertainty in promotions prices And Assessments in general. The possibility is obtained not only from the discounts that will become obvious, but mainly from the fact that the market can easily fall into a pessimistic state, exceeding the level of discounts that should be applied to shares.
Thanks to the very nature of markets, shares LululeMon athletica Inc. Nasdak: Lulu Maybe in the game today, since the recent announcement of income has further strengthened this uncertainty in the retail sector.
Now investors can raise the question of whether today’s price in LululeMon is definitely representing these uncertainty or may be more disadvantages before they think about buying.
Lululemon sale: exaggerated or justified?
Lululemon athletica stock forecast today
$ 342.61
29.15% growthModerate purchase
Based on 30 analysts ratings
| The current price | $ 265.27 |
|---|---|
| High forecast | $ 500.00 |
| Average forecast | $ 342.61 |
| Low forecast | $ 200.00 |
Lululemon athletica defficast details
After a report of the latest results of quarterly income, Lululemon Shares decreased by 18%to put the end of the trade week On a big bear note. Taking into account the fact that the shares have already decreased by 30.6% in annual calculus, the question remains of whether it was in the end, this is a recent fall.
The only way to answer this is to study financial indicators as a result of the last quarter. To begin with, net income increased by 7% compared to the same quarter of last year, mainly from the growth of sales of the Chinese. This is an unexpected factor, given that trade tariffs are aimed at China above most other countries.
As for other international income, it is Growth rate, by the same, is more like 16%Raising the question of why again why The market reacted so negatively To the results. Negative is also not obvious in registered fields, given that gross profit increased by 0.6% per year, without reflecting some kind of increase in costs or uncertainty.
In general, LululeMon announced income up to $ 2.60 per share (EPS) compared to last year. The leadership also expects high growth of income with one figure over the next quarter, despite the uncertainty of trade tariffs, is still in full swing.
A The answer is the report on the cash flow And the story of the risk that he can give to experienced market investors.
The risk in the business of Lululemon occurs
When considering a bank flow report, investors may notice Significant size of net operating cash flows Compared to the same quarter of last year. Lululemon announced a pure outflow of 118.9 million dollars. The United States in this quarter compared to a net cash flow in the amount of $ 127.5 million. USA for the same quarter last year.
The largest factor in this change is the level of investment in investments that the company undertaken during the quarter, reaching $ 174.3 million. USA compared to typical 35 million dollars. This may be so because LululeMon Management sought to the front of potential increased costs in raw materials from the appearance of tariffs.
While this strategy is justified and is based on risk management for financial indicators in the next quarter, it also creates serious uncertainty for investors. What if Tariffs In fact, not like sharp as the market is valued today?
Then Lululemon will sit almost six times more inventory than usual, inventory, which they cannot celebrate, and rather, you will have to strike.
A hit can mean serious disappointment of EPS in the future, directly affecting the assessment of shares. However, given that the action is currently traded by 63% of its 52-week maximum, while the decrease by almost 20% after the results of profit, investors may assume that this Script “Worst case” May be mainly in priceField
Of course, this uncertainty cannot be fully appreciated, since it is impossible to find out what tariff influences will be on this larger inventory in the coming months, and how this will affect the company’s margin and the EPS economy.
Despite all this uncertainty, investors can also assume that the ratio of risk to reward in Lululemon favors them by a wide margin. Considering that there is little space left to move below, focusing on the growth potential, really brings the house settings, as evidenced by the decision of the Bank of America Lorraine Hutchinson analyst to maintain the purchase rating for shares.
Purchase rating They came along with an estimate of $ 370 per share the day after LululeMon reported these figures, which means that the general mood is still optimistic for the company at this low price. Now investors can see that It implies 40% growth Any unambiguous percentage is made, similar to an excellent offer today.
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