This Hot Growth Stock Is Still a Buy After Enormous Gains
With a stock price up over 300% in the past five years, you might think you missed your chance with Lululemon Athletica (NASDAQ: LULU). That feeling would have been amplified by the recent news from the company that described a tougher selling environment right now in the athleisure industry.
Lululemon isn't nearly done expanding, though, and there are many paths the company can take as it builds on its current annual revenue level of roughly $8 billion. With that prospect in mind, let's look at a few reasons why Lululemon is still an attractive stock today.
Lululemon's operating results through late September were stellar. Comparable-store sales were up a blazing 25% after accounting for currency exchange rate shifts. Management's updated outlook calls for that positive momentum to continue into early 2023, with 2022 fiscal-year sales likely rising between 25% and 27% year over year in Q4. "We are pleased with our continued revenue growth," CEO Calvin McDonald said in a press release regarding the Q4 earnings.
Source Fool.com
