| Stock (Symbol) | Stock Price | |
Lululemon Athletica (LULU) |
$73 |
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| Data is as of | Expected to Report | Sector |
March 29, 2012 |
June 11 |
Retail & Restaurant |
| Sharek’s Take | ||
 Lululemon’s shelves are stocked and sales continue to zoom. In fact, same store sales rose 26% last quarter — wow! That’s because last year the shelves were bare and now management has enough yoga pants to sell.This company has high momentum. Sales are expected to rise 45% this year. LULU opened 41 stores in 2011, bringing the total to 174. The market can handle 400. The big question is how high of a P/E can you give a retail stock? LULU’s P/E is 45 now. Is 50 too high? |
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| One-Year Chart | ||
 LULU’s P/E has gone from 34 to 45 since last quarter. The stock’s also extended. But, on the other hand, business is perfect right now so LULU deserves the praise.Profit growth has been great the last four quarters. Estimates are very good and I can imigane they will get beat. |
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| Earnings Table | ||
 Profit growth was 59% last quarter, on a 51% rise in sales. Smells like this stock could be worth 50 times earnings.LULU beat the street by a whopping 9 cents last quarter — awesome production. Yes, I see. The shelves are stocked. Annual Profit Estimates jumped a good bit this quarter. 2012’s estimate rose from $1.48 to $1.63 in three months. If LULU makes $1.89 that would be 50% profit growth for the year. Quarterly estimates look solid. |
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| Fair Value | ||
 Yes, LULU is worth 50 times earnings. Upside is limited this year, but solid for 2013. |
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| Ten-Year Chart | ||
 Lululemon is extended in the ten year chart. Then again, the stock just seems to rise rapidly most of the time. At 45 times earnings this isn’t the safest stock in the market — I really have to keep a finger on LULU’s pulse. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
6 of 17 |
Lululemon is in a zone. Sales are zooming and the stock has high momentum. I think LULU can continue higher as estimates and the P/E both increase, but this stock is close to Fair Value. LULU is ranked 6th in both the 17 stock Growth Portfolio and 8 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
6 of 8 |
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