6 Good Buys for a Portfolio

3. Lululemon Athletica (LULU), a designer and retailer of technical athletic apparel, operates in North America and Australia. It offers a range of performance apparel and accessories for youth and adults.

The company recorded year-to-date return of 42.2%. In the past year, earnings per share grew 107.2%, while book value per share increased 60.4%, as per data compiled by Bloomberg. Revenue grew 6.6%, year-to-date.

For the third quarter of fiscal 2011, net revenue increased 31% to $230.2 million from the 2010 quarter. Net income attributable to LULU was $38.8 million, or 27 cents per diluted share, compared to $25.7 million, or 18 cents per diluted share in the prior-year period. At the end of the quarter, the company had 165 stores in North America and Australia with comparable sales per square foot of $1,880.

Net revenue guidance for 2011 fourth quarter is in the range of $327 million to $332 million. Diluted earnings per share are pegged between 40 cents and 42 cents.

Of the 23 analysts covering the stock, 57% recommend a buy and 39% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 13.5% to $55.19 in the upcoming 12 months.

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