The 7investing Podcast cover image

The 7investing Podcast

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

Oct 18, 2024
05:49

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.

Would you like to see our official Conviction Rating on Lululemon - meaning whether we think the stock is a "Strong Buy", "Buy", or "Hold"?

See all of 7investing's recommendations, conviction ratings, and premium coverage by getting started FOR FREE today at 7investing.com/subscribe.

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

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode