When picking stocks, no group is more treacherous than retail. This sector has been hit and hit hard as if it were a boxer’s punching bag. Big or small, these stocks have shown that perhaps the consumer is not shopping. Frightening drops from Nordstrom, Macy’s, Target, Phillips Van Heusen, Restoration Hardware and Walmart last month tell us to be be extremely selective when sorting through the retail sector.
All is not gloomy, though. Some apparel makers, like Nike and Under Armor, have been performing at the top of the class. Add Lululemon to that short list.
Lululemon Stock Chart (Nasdaq: LULU)
Lululemon has recently pushed past its poor performance, and it’s now exhibiting envious relative strength. Turnover has been brisk and option flow has been solid over the last several days, and the MACD is flashing a buy signal. While it’s not a slam dunk here, we could see price rise toward the 200 ma at $60, more than 16% higher from where it currently sits.
As we head into the holiday shopping season, we will look for the best stock performers and ride them through the end of the year. Let’s see if Lulu can deliver on these most recent gains and carry the stock to greater heights.
Lululemon Video Chart Analysis
Take a deeper dive into the chart action (Nasdaq: LULU) and learn how to read the technicals and analysis as Bob Lang marks up our chart of the week.
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About Lululemon
lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates through two segments, Corporate-Owned Stores and Direct To Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle activities and athletic pursuits, such as yoga, running, and general fitness; and dance-inspired apparel for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats, and water bottles. The company sells its products through a chain of corporate-owned and operated retail stores; a network of wholesale channel, such as yoga studios, health clubs, and fitness centers; and outlets and warehouse sales, as well as directly to consumer through lululemon.com and ivivva.com e-commerce sites, and showrooms. As of February 1, 2015, it operated 302 corporate-owned stores under the lululemon athletica and ivivva athletica brand names in the United States, Canada, Australia, New Zealand, the United Kingdom, and Singapore. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.
