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LULU:ADXLulu Retail Holdings PLC Analysis

Data as of 2026-03-17 - not real-time

$159.91

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Lululemon’s stock is currently trading below its 50‑day and 200‑day moving averages, with the RSI indicating an oversold condition and the MACD generating a bearish signal. Despite increasing volume and a bullish “Extreme Greed” sentiment index, the technical picture remains bearish, and the price sits near the lower end of its recent range.
Fundamentally, the company delivers strong profitability—high gross and operating margins, ROE above 40%, and solid cash generation—yet the discounted cash‑flow model places intrinsic value well below the market price, suggesting an overvalued situation. Analyst consensus leans toward a hold, reflecting confidence in the brand’s growth prospects but caution over the current premium valuation.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price below key moving averages
  • RSI in oversold territory
  • Increasing volume but bearish MACD

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Strong profit margins and cash flow
  • Robust revenue growth and brand expansion
  • Potential price correction toward intrinsic value

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • High return on equity and sustainable operating cash flow
  • Continued global store rollout and e‑commerce growth
  • Resilient consumer demand for premium athleisure

Key Metrics & Analysis

Financial Health

Revenue Growth7.10%
Profit Margin15.72%
P/E Ratio11.1
ROE41.02%
ROA20.29%
Debt/Equity39.16
P/B Ratio4.2
Op. Cash Flow$1.9B
Free Cash Flow$884.9M

Technical Analysis

TrendBearish
RSI33.6
Support$156.64
Resistance$192.49
MA 20$174.16
MA 50$184.03
MA 200$197.13
MACDBearish
VolumeIncreasing
Fear & Greed Index79.11

Valuation

Fair Value$131.01
Target Price$207.55
Upside/Downside29.79%
GradeOvervalued
TypeGrowth

Risk Assessment

Beta1.23
Volatility41.66%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.