Lululemon Athletica Inc. (LULU): Today's Featured Consumer Non-Durables Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.9%. By the end of trading, Lululemon Athletica rose $1.85 (2.7%) to $71.13 on light volume. Throughout the day, 1,791,659 shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 3,415,600 shares. The stock ranged in a price between $68.94-$71.90 after having opened the day at $69.32 as compared to the previous trading day's close of $69.28. Other companies within the Consumer Non-Durables industry that increased today were: Tandy Brands Accessories ( TBAC), up 13.2%, Joe's Jeans ( JOEZ), up 9.6%, Delta Apparel ( DLA), up 5.4% and CTI Industries Corporation ( CTIB), up 5.0%.

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 $8.2 billion and is part of the consumer goods sector. Shares are down 5.5% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Lululemon Athletica a buy, 3 analysts rate it a sell, and 13 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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. 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, Exceed Company ( EDS), down 5.4%, China Xiniya Fashion ( XNY), down 3.3%, Zuoan Fashion ( ZA), down 3.3% and Superior Uniform Group ( SGC), down 2.6%.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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