Lululemon Athletica The stock saw a sizable insider exit earlier this week when Dennis Wilson, a director, sold 115,300 shares for $7.5 million. "As we noted in our December 2 upgrade of lululemon athletica (LULU-NASDAQ) from UNDERWEIGHT to BUY, we think the Company has some of the strongest growth prospects in our coverage universe due to its compelling product and unique store environment; the 4Q results reinforce our thesis," KeyBanc Capital Markets analysts wrote in a Jan. 11 report. Shares of Lululemon hit a 52-week high of $65.79 on Thursday. The stock's 52-week low of $36.35 was set on March 2. Lululemon has a forward P/E of 41.09X; the average for clothing and accessories companies is 26.15X. For comparison, Gildan Activewear ( GIL) has a lower forward P/E of 11.21X. Of the 23 analysts who cover the company, 13 gave it a buy rating. Nine analysts said the stock is a hold and one rated it a sell. TheStreet Ratings gives Lululemon a B+ grade and has a $83.41 price target on the shares. The stock has risen 40.85% year to date.
Dollar Tree The discounted retailer was initiated with an overweight rating and a $100 price target by JPMorgan on Thursday. "In our view, DLTR represents a multi-year core portfolio holding with sustainable 20%+ EPS growth driven by a rare combination of (1) top-line (+ traffic & ticket, HSD Sq Ft growth; $50K+ core base), (2) margin expansion (GPM & SG&A drivers), and (3) balance sheet levers (6.5% FCF yield, 15.5% debt/cap)," JPMorgan analysts wrote in a report Thursday. "Taking a step back, DLTR's investment profile is among the best in retail today given consistency and growth - more than justifying the next leg higher for shares, in our view." Shares of Dollar Tree hit a 52-week high on Thursday of $86.87. The stock's 52-week low of $48.51 was set on Feb. 23. Dollar Tree has a forward P/E of 18.14X; the average for specialty retailers is 16.8X. Both Bed Bath & Beyond ( BBBY) and Best Buy ( BBY) have lower forward P/Es of 13.62X and 6.83X respectively. Fourteen of the 24 analysts who cover the stock rated it a buy. Ten analysts gave Dollar Tree a hold rating. TheStreet Ratings gives Dollar Tree an A grade and has a $112.91 price target on the shares. The stock has increased 4.43% year to date.