The S&P 500 Welcomes Lululemon: Is This a Game-Changer for the Stock?
In October, tech giant Microsoft completed its acquisition of video game publisher Activision Blizzard. For its part, Activision Blizzard was a constituent of the S 500 -- an index of 500 of the largest, most profitable U.S.-based companies.
Since Activision Blizzard is no longer independent, a new company needed to take its place in the index. And that company is athletic apparel company Lululemon Athletica (NASDAQ: LULU).
Lululemon stock soared to a 52-week high following this announcement. Some believe that an old stock market theory called the "S 500 Inclusion Effect" is delivering lucrative gains. However, in this article I'll explain why this isn't the case and how this can impact returns for Lululemon investors.
Source Fool.com
Lululemon Athletica Inc. Stock
€224.20
-0.580%
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 92 Buy predictions and 6 Sell predictions.
With a target price of 444 € there is a hugely positive potential of 98.04% for Lululemon Athletica Inc. compared to the current price of 224.2 €.
