Lululemon Athletica Inc. (LULU): Today's Featured Consumer Non-Durables 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 Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole closed the day up 0.2%. By the end of trading, Lululemon Athletica rose $0.85 (1.0%) to $82.28 on average volume. Throughout the day, 2,576,896 shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 2,744,600 shares. The stock ranged in a price between $80.84-$82.50 after having opened the day at $81.66 as compared to the previous trading day's close of $81.43. Other companies within the Consumer Non-Durables industry that increased today were: KapStone Paper And Packaging Corporation ( KS), up 17.9%, DS Healthcare Group ( DSKX), up 7.3%, Forward Industries ( FORD), up 4.7% and Tredegar Corporation ( TG), up 4.5%.
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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 $11.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 43.0, above the S&P 500 P/E ratio of 17.7. Shares are up 4.4% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Lululemon Athletica a buy, 3 analysts rate it a sell, and 8 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 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 negative front, AEP Industries ( AEPI), down 20.1%, Titan International ( TWI), down 13.6%, Rocky Brands ( RCKY), down 3.9% and Tandy Leather Factory ( TLF), down 3.2% , were all laggards within the consumer non-durables industry with Sealed Air Corporation ( SEE) being today's consumer non-durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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