Should I Buy LULU Stock in 2026?

Data-driven analysis and honest assessment for Lululemon Athletica Inc

Analysis Updated:
HOLDMixed signals - suitable for existing holders

Current Price: $185.17P/E: 12.9

Decision Score

5.8/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)8/10

Attractive P/E of 12.9

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)10/10

Excellent FCF yield of 9.4%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$185.17

P/E Ratio

12.87

Revenue Growth

0.1%

Profit Margin

0.2%

Market Cap

$22.0B

Dividend Yield

None

How LULU Compares to Competitors

Understanding how LULU stacks up against peers helps inform your investment decision.

How LULU Compares to Peers

Upcoming Events for LULU

+5 Reasons TO Buy LULU

1. High free cash flow yield of 9.4%

strong

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

2. Attractively valued at 12.9x earnings

moderate

A P/E ratio of 12.9 is below the market average of ~20x, suggesting the stock may be undervalued.

3. High gross margins of 58%

moderate

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

-5 Reasons NOT to Buy LULU

1. Thin profit margins of 0.2%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy LULU?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 12.9 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Income-Focused Retirees

    No dividend paid

Consider These Alternatives

If you're interested in LULU, compare these Consumer Discretionary peers:

Pro tip: Compare LULU directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for LULU

Frequently Asked Questions

What is LULU stock price today?

LULU (Lululemon Athletica Inc) stock is trading at $185.17 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is LULU stock going up or down today?

LULU stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy LULU stock now?

The decision to buy LULU depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is LULU a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for LULU based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is LULU stock overvalued or undervalued?

LULU currently trades at a P/E ratio of 12.87, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if LULU is fairly priced.

What is LULU's P/E ratio?

LULU has a price-to-earnings (P/E) ratio of 12.87, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is LULU's market cap?

LULU (Lululemon Athletica Inc) has a market capitalization of $21.96 billion, making it a mid-cap stock.

What is LULU's price to book ratio?

LULU trades at a price-to-book (P/B) ratio of 4.85, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

Similar Investment Decisions

Explore investment analyses for stocks similar to Lululemon Athletica Inc

Explore Categories

Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.