TThe following are today’s upgrades to Validea’s Growth Investor model, based on Martin Zweig’s published strategy. This strategy looks for growth stocks with continued accelerating earnings and revenue growth, reasonable valuations, and low levels of debt.
LULULEMON ATHLETICA INC (LULU) is a large cap growth stock active in the Retail (Apparel) industry. The rating according to our Martin Zweig-based strategy changed from 82% to 89% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or greater typically indicates that the strategy has some interest in the stock, and a score above 90% typically indicates strong interest.
Company Description: Lululemon Athletica Inc. is a designer, distributor and retailer of lifestyle-inspired athletic apparel and accessories. The Company’s segments include company-operated stores and direct-to-consumer sales. The apparel range includes items such as trousers, shorts, tops and jackets designed for a healthy lifestyle, including sporting activities such as yoga, running, exercising and other sweaty activities. It also offers fitness-related accessories. The Company’s operated stores include approximately 574 stores in 17 countries. The retail stores are mainly located at street locations, lifestyle centers and in malls. The direct-to-consumer segment includes the e-commerce website www.lululemon.com, other country- and region-specific websites, and mobile applications, including mobile applications on in-store devices. The Company also conducts business through MIRROR, which offers at-home fitness through an exercise platform; Operation of branches and temporary locations.
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
|SALES GROWTH RELATIVE TO EPS GROWTH:||FAIL|
|SALES GROWTH RATE:||HAPPEN|
|CURRENT QUARTERLY EARNINGS:||HAPPEN|
|QUARTERLY EARNINGS A YEAR AGO:||HAPPEN|
|POSITIVE EARNINGS GROWTH RATE FOR THE CURRENT QUARTER:||HAPPEN|
|EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:||HAPPEN|
|CURRENT QUARTER EPS GROWTH MUST BE LARGER THAN PREVIOUS 3 QUARTERS:||HAPPEN|
|CURRENT QUARTER EPS GROWTH MUST BE GREATER THAN HISTORICAL GROWTH RATE:||HAPPEN|
|CONSISTENCY OF WIN:||FAIL|
|LONG-TERM EPS GROWTH:||HAPPEN|
|TOTAL DEBT/EQUITY RATIO:||HAPPEN|
Detailed Analysis of LULULEMON ATHLETICA INC
Full guru analysis for LULU
Full factor report for LULU
More details on Validea’s Martin Zweig strategy
About Martin Zweig: During the 15 years it was monitored, Zweig’s stock picks newsletter returned an average of 15.9 percent per year, during which time it was number one based on Hulbert Financial Digest’s risk-adjusted returns. Zweig has managed both mutual funds and hedge funds throughout his career and has used the wealth he has amassed for some interesting purposes. He owns the most expensive apartment in New York according to Forbes, a $70 million penthouse atop the Pierre Hotel in Manhattan, and he’s a collector of all manner of pop culture and historical memorabilia – among his purchases is the gun used by used was Clint Eastwood in “Dirty Harry,” a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps resembling those he’d reportedly seen at a nearby gas station growing up in Cleveland.
About Validea: Validea is an investment research service that tracks the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over time, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. You can find more information about Validea here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.