Why is Lululemon's Stock Selling in the Bargain Bin?

Lululemon (Nasdaq: LULU) has expanded from being a niche yoga retailer to an international fitness super-brand. New CEO Calvin McDonald has tripled its sales in five years and maintained its industry-leading 20% operating margin.

Yet recently, perhaps due to concerns of a slowdown in consumer spending or of rising competition, the stock has been selling for a dirt-cheap valuation. Now priced at just 15x its trailing cash flow, it could an inexpensive opportunity for opportunistic investors to consider.

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Disclaimer: The 7investing podcast should not be considered personalized financial advise. Its host and guests may have positions in the stocks that are mentioned.