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

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 Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Lululemon Athletica fell $1.21 (-1.7%) to $70.07 on average volume. Throughout the day, 3,312,389 shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 3,337,900 shares. The stock ranged in price between $69.74-$71.99 after having opened the day at $71.95 as compared to the previous trading day's close of $71.28. Other companies within the Consumer Goods sector that declined today were: Agria Corporation ( GRO), down 7.8%, Tianli Agritech ( OINK), down 7.1%, ConAgra Foods ( CAG), down 6.0% and PVH ( PVH), down 5.6%.

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 $7.9 billion and is part of the consumer non-durables industry. Shares are down 8.8% year to date as of the close of trading on Monday. 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 net income. 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, Coldwater Creek ( CWTR), up 13.7%, China Automotive Systems ( CAAS), up 12.8%, Elecsys Corporation ( ESYS), up 11.5% and SkyPeople Fruit Juice ( SPU), up 10.0% , were all gainers within the consumer goods sector with Herbalife ( HLF) being today's featured consumer goods sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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