Lululemon Athletica (LULU) Is Today's Pre-Market Mover With Heavy Volume Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lululemon Athletica as such a stock due to the following factors:
- LULU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $126.2 million.
- LULU traded 220,776 shares today in the pre-market hours as of 8:54 AM, representing 10.2% of its average daily volume.
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More details on LULU:
lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. LULU has a PE ratio of 38.6. Currently there are 13 analysts that rate Lululemon Athletica a buy, 2 analysts rate it a sell, and 13 rate it a hold.
The average volume for Lululemon Athletica has been 2.2 million shares per day over the past 30 days. Lululemon has a market cap of $8.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.36 and a short float of 16.6% with 6.63 days to cover. Shares are up 13.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Lululemon Athletica as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 10.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- LULU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.36, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, LULU's share price has jumped by 28.21%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has significantly increased by 79.50% to $42.86 million when compared to the same quarter last year. In addition, LULULEMON ATHLETICA INC has also vastly surpassed the industry average cash flow growth rate of -39.72%.
- The gross profit margin for LULULEMON ATHLETICA INC is rather high; currently it is at 54.05%. Regardless of LULU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LULU's net profit margin of 14.41% compares favorably to the industry average.
- You can view the full Lululemon Athletica Ratings Report.
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