Trade-Ideas LLC identified

Lululemon Athletica

(

LULU

) 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 $132.2 million.
  • LULU traded 353,187 shares today in the pre-market hours as of 9:13 AM, representing 17.5% 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 through two segments, Corporate-Owned Stores and Direct To Consumer. LULU has a PE ratio of 34. Currently there are 16 analysts that rate Lululemon Athletica a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Lululemon Athletica has been 2.6 million shares per day over the past 30 days. Lululemon has a market cap of $7.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of -0.01 and a short float of 19.7% with 9.93 days to cover. Shares are up 15.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lululemon Athletica as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.2%. Since the same quarter one year prior, revenues rose by 14.4%. 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. To add to this, LULU has a quick ratio of 2.00, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for LULULEMON ATHLETICA INC is rather high; currently it is at 50.97%. 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 11.08% compares favorably to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income has decreased by 12.1% when compared to the same quarter one year ago, dropping from $60.45 million to $53.15 million.
  • Net operating cash flow has significantly decreased to -$6.22 million or 114.51% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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