Lululemon Athletica Inc. stock has displayed recent bullishness that may be interesting to traders & investors.
Trading under the ticker LULU, their stock closed at $417.38/share on 10/18/2021.
Lululemon Athletica Inc. LULU Stock’s Technicals Broken Down
LULU Stock Price: $417.38
10 Day Moving-Average: $399.14
50 Day Moving-Average: $407.15
200 Day Moving-Average: $355.96
RSI: 57.3
MACD: -1.814
Yesterday, LULU had a bullish MACD crossover, while also breaking above its 50 Day Moving-Average.
LULU stock should receive additional near-term momentum as their 10 Day MA is ~2% below breaking above their 50 Day MA as well.
While recent volume has been light, LULU’s RSI is also still within the range of neutral, not signaling overbought conditions just yet, which means there is more room to run while they begin to establish a new range.
Lululemon Athletica Inc. LULU Stock As A Long-Term Investment
Investors may find LULU’s fundamentals appealing for a long-term investment opportunity.
LULU stock’s P/E (ttm) is 63.8, with a P/B of 19.61, which are a bit rich.
However, their Quarterly Revenue Growth Y-o-Y is 60.7%, which is sure to catch investors’ eyes.
LULU’s balance sheet also looks appealing, with Total Cash (mrq) of $1.17B & Total Debt (mrq) of only $794.8M.
Lululemon Atheltica Inc.’s stock does not pay a dividend yield, which may disappoint some investors.
Despite this, they still have 86.8% Institutional Investors, which some investors view as a vote of confidence in a company.
Lululemon Atheltica Inc. LULU Stock As A Short-Term Trade Using Options
Short-term oriented traders can use LULU options to take advantage of their current momentum & strength, while also hedging themselves against broader market volatility.
I am looking at the 10/29 expiration dated contracts, with the $415 & $417.50 calls looking appealing in-the-money, as well as the $420 calls that are just out-of-the-money.
The $425 & $430 puts also look interesting, although all of these contracts are fairly illiquid with low Open Interest levels.
Tying It All Together
Overall, there are many advantages Lululemon Athletica Inc.’s stock present to investors & traders alike.
Investors should like their balance sheet & income statement metrics, including growth.
Traders should find their recent bullish growth & momentum behind it appealing, as well as the ability to hedge their bets using puts as well as call options.
LULU stock is worth taking a closer look at for investors & traders alike.
*** I DO NOT OWN SHARES OF LULU STOCK ***