Lululemon Athletica Inc. (LULU): Today's Featured Consumer Goods Loser

Lululemon Athletica ( LULU) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods loser. The sector as a whole closed the day down 0.6%. By the end of trading, Lululemon Athletica fell 90 cents (-1.6%) to $55 on average volume. Throughout the day, 3.8 million shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $53.79-$55.64 after having opened the day at $55.32 as compared to the previous trading day's close of $55.90. Other company's within the Consumer Goods sector that declined today were: Enova Systems ( ENA), down 12.4%, Mannatech ( MTEX), down 10.8%, Central European Distribution ( CEDC), down 10.4%, and MOD-PAC Corporation ( MPAC), down 10.2%.

lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel for women, men, and female youth. Lululemon Athletica has a market cap of $6.54 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 42.6, below the average consumer non-durables industry P/E ratio of 43.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 24.2% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Lululemon Athletica a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Lululemon Athletica as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Cereplast ( CERP), up 22.3%, ATC Venture Group ( ATC), up 10%, Joe's Jeans ( JOEZ), up 9%, and Forward Industries ( FORD), up 6.2%, were all gainers within the consumer goods sector with Molson Coors Brewing Company ( TAP) being today's featured consumer goods sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).
null

If you liked this article you might like

PayPal Owns a Millennial-Friendly Business That Might Send Its Stock Soaring

As Target and Walmart Move Away From AWS, How Much Pain Will Amazon Feel?

Hurricane Harvey and a Disappointing Jobs Report -- Week in Review

Nasdaq Seals New Record but Weak Jobs Report Raises Fed Questions