LULU Stock Analysis: Buy, Sell, or Hold?
LULU - lululemon athletica inc.
$117.22
0.89 (0.77%)
▲
5d:
-2.56%
30d:
+4.89%
90d:
-29.93%
BUY
HIGH Confidence
Analysis Updated: Jul 20, 2026 12:00 AM ET
Earnings: Sep 03, 2026
Smart Money Accumulation
None View Scanner →
Strength: 4.7/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: LULU trading at deep discount. Market pricing in -9.0% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: LULU trading at deep discount. Market pricing in -9.0% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$155.31
Based on 0.2% avg growth
INTRINSIC VALUE TODAY
$96.43
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: LULU is currently trading at $117.22, which is considered fair relative to its 30-day fair value range of $112.00 to $119.02. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.3) compared to its historical average (12.3). Remarkably, the market is currently pricing in an annual earnings decline of 9.0% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, LULU is in a strong downtrend. Immediate support is located at $110.90, while resistance sits at $122.00.
Market Sentiment: LULU has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $128.73 (+10.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, LULU is in a strong downtrend. Immediate support is located at $110.90, while resistance sits at $122.00.
Market Sentiment: LULU has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $128.73 (+10.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$112.00 -
$119.02
Company Quality Score
63/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
81.0%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($128.73)
Trading Range Analysis
30-Day Trading Range
$112.00 -
$119.02
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$110.90
Resistance Level
$122.00
Current Trend
Strong Downtrend
Technical data as of
Jul 20, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.27
Wall Street Target
$128.73
(+10.7%)
Revenue Growth (YoY)
4.3%
Earnings Growth (YoY)
-35.0%
Profit Margin
13.0%
Valuation Discount vs History
-9.0% cheaper
PE vs Historical
9.3 vs 12.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-9.0%
(market-implied from PE analysis)
1-Year Target
$105.86
(-9%)
2-Year Target
$96.33
(-17%)
3-Year Target
$87.66
(-25%)
3-Yr Target (if PE normalizes)
(PE: 9→12)
$116.38
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.0, Growth: -3.7%)
$235.91
(+103%)
Base:
(SPY PE: 9.3, Growth: -3.7%)
$104.04
(-11%)
Bear:
(PE: 7.9, Growth: -3.7%)
$88.43
(-24%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 9.62 | Current EPS (TTM): $12.35
Bull Case
$132.84
(+14%)
Analyst growth 1.7%, PE expands to 10.6
Base Case
$120.77
(+4%)
Market implied 1.7%, PE stable at 9.6
Bear Case
$80.78
(-31%)
Severe decline -20.0%, PE contracts to 8.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.3 to 12.3
Stabilization Target:
$154.43
(+32.8%)
PE Expansion Potential:
+32.8%
Share & Embed Analysis
Last updated: July 20, 2026 2:37 PM ET
Data refreshes hourly during market hours. Next update: 3:37 PM
Data refreshes hourly during market hours. Next update: 3:37 PM
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Technical Signals Check
Is LULU showing a specific setup today?
Insider Activity (6 Months)
5
Buys
5
Sells
0
Net
NEUTRAL
Recent Transactions
Nicole Neuburger
SELL
622 shares
2026-04-08
Andre Maestrini
BUY
3275 shares
2026-04-01
Ro Khanna
SELL
2026-03-23
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