Is it Time to Sell Lululemon Near All-Time Highs?

Lululemon (NASDAQ: LULU) has surged since Q2 2017, outpacing other large specialty and athletic apparel peers such as Nike (NYSE: NKE), Under Armour (NYSE: UAA), Columbia (NASDAQ: COLM), and VF (NYSE: VFC). In the 12 years following the company's 2007 IPO, LULU has delivered returns 991 percentage points above the S&P.

As recession fears loom and a market downturn becomes increasingly likely, it can be prudent to scrutinize highfliers like Lululemon to identify opportunities for redeploying capital toward less-speculative positions.

Company analysis should begin with a study of Lululemon's operations, assessing management's efficiency, and confirming that the qualitative narrative stands up to scrutiny. Any red flags unearthed here can be sufficient to remove the name from investment consideration entirely.

Source Fool.com