Lululemon Lands Bull Note Ahead of Earnings

LULU stock has moved higher after the last five earnings reports

Managing Editor
Aug 28, 2018 at 10:26 AM
facebook X logo linkedin


Lululemon Athletica Inc. (NASDAQ:LULU) stock is moving higher in early trading, after receiving a price-target hike to $154 from $125 at Credit Suisse. The lift represents 11.5% upside from Monday's close, and sits in uncharted territory for LULU. What's more, the positive attention comes just ahead of the yoga retailer's second-quarter earnings release -- slated for after the market close on Thursday, Aug. 30. Lululemon stock is up 0.6% at $138.96, at last check.

On the charts, LULU has been in a long-term uptrend, adding roughly 130% in the past year. The shares enjoyed a post-earnings bull gap on June 1, and after a subsequent pullback and bounce off their 60-day moving average, went on to notch a record peak of $140.41 yesterday. The stock was edging near overbought territory heading into today's trading, per its 14-day Relative Strength Index (RSI) -- which settled last night at 69. 

Meanwhile, near-term traders are more call-heavy than usual toward Lululemon Athletica stock. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.95, which ranks in the low 26th percentile of its annual range.

On the other hand, despite LULU's long-term rally, several analysts remain wary, with 13 of the 29 firms following the apparel name maintaining tepid "hold" ratings. Plus, the consensus 12-month price target of $126.86 is a discount to current levels.

Looking into its earnings history, Lululemon stock has finished higher the day after the last five earnings showings, including a 16.3% surge during the aforementioned June 1 report. Should the firm once again best expectations, a round of upgrades or additional price-target hikes could push LULU to higher highs.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI