Lululemon Athletica inc. (NASDAQ: LULU)
Lululemon Athletica is off to an incredibly strong day in the market today. When the opening bell rang, the stock was already in the green. Since the market opened, we’ve watched as the it maintained incredible gains. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to LULU ahead.
What We’re Seeing From LULU
As mentioned above, Lululemon Athletica is off to yet another strong day in the market today. Following up on yesterday’s gains, the stock started the trading session off well in the green. Since the open, it has had no problem maintaining the gains. Currently (12:36), LULU is trading at $69.60 per share after a gain of $9.76 per share or 16.31% thus far today.
Why The Stock Is Up
As usual, when the CNA Finance team was notified by Trade Ideas that LULU was trading up, we decided to do some digging to see if we could find the reason for the gains. It didn’t take much work to uncover the cause. Yesterday, the stock climbed on earnings. Today, many were expecting for it to fall off of highs, but with a key analyst weighing in, that’s not what’s happening.
Earlier today, Wells Fargo analysts weighed in, stating that the earnings report was “a very large breath of fresh air” for Lululemon Athletica. As a result, the analysts made the decision to reiterate their Outperform rating on the stock. However, the analysts did lower the valuation range from $84-$86 to $78-$80. Here’s a key snippet from the Wells Fargo Report…
“While expectations had been coming down throughout the quarter, LULU delivered a solid comp beat which not only illustrated a sequential comp acceleration, but it occurred on top of very tough compares from LY (last year)…”
What We’ll Be Watching For Ahead
Moving forward, we’ll be watching for more analyst opinions on LULU. With Wells Fargo weighing in in a positive way, the stock is doing well. More analysts weighing in could change things. Also, we’re anxiously awaiting sales reports. With the company warning of a slow start to the fourth quarter, we could see volatility. Nonetheless, we’ll watch the story closely and bring the news to you as it breaks!
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