Shares of Lululemon Athletica (LULU, Financial) surged by 15.7% to $398.93 as the company announced robust third-quarter results for 2024 and raised its full-year guidance. This strong performance prompted an upward revision of price targets by many analysts, reflecting the market's positive response.
Lululemon (LULU, Financial) reported a 9% year-over-year increase in revenue, reaching $2.4 billion and surpassing its management's forecast of $2.3 billion. The positive financial results have led analysts to increase their price targets, contributing to the stock's significant appreciation.
Moreover, the company has adjusted its full-year guidance, now expecting a 9% growth, an increase from its prior estimate of 8% to 9%. Earnings projections have also been revised to align with the higher end of the previously set guidance.
From a stock analysis perspective, Lululemon (LULU, Financial) exhibits strong financial health. The company's P/E ratio stands at 28.82, while its Price-to-Book ratio is 12.29. The GF Value indicates that the stock is modestly undervalued, with a valuation of $485.84. You can view the detailed GF Value analysis of LULU here.
Lululemon (LULU, Financial) is positioned in the "Retail - Cyclical" industry and is noted for its expanding operating margins, a positive sign of profitability. The company's Altman Z-Score is a robust 11.75, indicating strong financial stability. Additionally, with an expanding operating margin and a notable return on capital of 37.77%, Lululemon maintains a strong footing in its industry.
Looking ahead, Lululemon's strategic goals include doubling its revenue by 2026, which translates to a 15% compound annual growth rate since 2022. Current projections estimate revenue close to $10.5 billion in 2024, aiming for $12.5 billion by 2026, suggesting a steady growth trajectory for the company.
