NEW YORK (TheStreet) -- A one-year chart of Lululemon Athletica (LULU - Get Report) stock may not be as good-looking as the company's stylish exercise clothing, but shares are set to break to the upside.
Lululemon shares recently tested their 52-week lows and held up, catching a small bounce to the upside. With a sizable bid just underneath current price levels, it's easy to manage the risk of a bullish trade in this stock.
I won't launch into a full-blown discussion of technical analysis, but the chart does appear to have bottomed.
More importantly, new CEO Laurent Potdevin appears to bring fresh energy to company, and Lululemon seems to be gaining popularity with a new group of customers: men.
My wife and I are avid bodybuilders, and because my wife loves to shop at our local Lululemon, I spend more time there than I'd like to admit.
For women, the leggings become an addiction. If you own one pair, you probably own four. The same goes for the tops, handbags, socks, underwear and other accessories.
I know several people who are carrying substantial credit card debt partly because their Saturday Lululemon shopping sprees, and not all of them are women.
In fact, in my recent visits to the local Lululemon store, more than half of the customers were fit men. The new norm is men who are willing to shell out more than $50 for a T-shirt, $40 for a pair of boxer briefs and more than $100 for pants and track suits. When the store opened several years ago, it was rare to see men in it all, let alone men standing in the checkout line with their arms full of clothes.
These men run the gambit from avid runners to fitness competitors and bodybuilders. The ever-expanding market for Lululemon apparel is something that very soon should increase same-store sales and the company's stock price.
Store employees have told me there has been a definite resurgence in the brand's popularity recently and expect this to continue as new, fresh and innovative products hit shelves this coming holiday season.