Lululemon Athletica Stock Lands Fresh Round of Analyst Bull Notes

LULU has been a long-term outperformer on the charts

Managing Editor
Oct 2, 2018 at 9:24 AM
facebook twitter linkedin

Yoga apparel concern Lululemon Athletica Inc. (NASDAQ:LULU) is set to open at a fresh record high, after receiving no fewer than three price-target hikes from analysts early this morning. Specifically, Cowen and Company, Wedbush, and B. Riley all hiked their respective price targets to $185, $176, and $155.

Today's analyst attention is far from unusual for Lululemon stock. The athletic wear name received a minimum of one upgrade and five price-target hikes in September alone, and a myriad of similar bullish attention in August. Currently, 15 of the 27 covering firms sport "strong buy" recommendations on the stock. 

LULU has been in a long-term uptrend on the charts, with a line of support stemming from the 50-day moving average since late last year. The shares recently saw a post-earnings bull gap on Aug. 31, and have more than doubled year-to-date, closing Monday at $161.64.

Digging deeper, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows Lululemon stock with a 50-day call/put volume ratio of 1.24, ranking in the 74th annual percentile. This indicates that over the past 10 weeks of trading, calls have been purchased over puts at a faster-than-usual clip.

Lastly, the security sports a Schaeffer's Volatility Scorecard (SVS) of 92 out of 100, which shows the stock has tended to make larger-than-expected moves on the charts compared to what the options market had priced in. In simpler terms, now may be an opportune time to speculate with near-term Lululemon Athletica options.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners