Lululemon Athletica Inc (NASDAQ:LULU) is beginning to lose ground to rival Alo Yoga, as the premium activewear market grows more competitive and consumer buzz shifts away from the long-time category leader, analysts at Jefferies have warned. They repeated their ‘Underperform' rating and $120 price target on Lululemon shares, implying about 30% downside from current levels.
The stocks listed here are all facing some considerable risks that could weigh on their results for the foreseeable future. Lululemon and Target are struggling with challenging economic conditions that may not be going away anytime soon.
Dr. Michael Burry of “The Big Short” fame shocked many, enraged some, and intrigued everyone when he pulled the curtain on Scion Asset Management's latest moves.
Costco is proving that its reliable model can withstand economic headwinds. Lululemon is dealing with spending cyclicality and tariffs, but its core business is strong.
While Lululemon works to resolve its inventory issues, the stock is trading at a forward earnings multiple of 14. Deckers' Hoka brand is emerging as one of the hottest names in footwear, yet investors can buy the stock at a bargain forward earnings multiple of 13.
Lululemon stock has shed nearly half of its value over the past year. Growth has slowed -- and in some cases turned negative -- but the valuation is also historically low.
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