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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Lululemon Athletica ( LULU) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.1%. By the end of trading, Lululemon Athletica rose 92 cents (1.5%) to $63.24 on light volume. Throughout the day, 1.5 million shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $62.36-$63.58 after having opened the day at $62.54 as compared to the previous trading day's close of $62.32. Other companies within the Consumer Goods sector that increased today were: Strattec Security Corporation ( STRT), up 7.2%, Central European Distribution ( CEDC), up 6.5%, China Marine Food Group ( CMFO), up 6%, and Standard Register Company ( SR), up 5.6%.
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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. Lululemon Athletica has a market cap of $7.01 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 33.7, above the S&P 500 P/E ratio of 17.7. Shares are down 18.2% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Lululemon Athletica a buy, three analysts rate it a sell, and six 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Lifeway Foods ( LWAY), down 10.2%, Crumbs Bake Shop ( CRMB), down 8.1%, Tandy Brands Accessories ( TBAC), down 8%, and Furniture Brands International ( FBN), down 7.5%, were all laggards within the consumer goods sector with BorgWarner ( BWA) being today's consumer goods sector laggard.

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).

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