TBelow are today’s upgrades to Validea’s patient-investor model based on Warren Buffett’s published strategy. This strategy seeks out companies with long-term, predictable profitability and low debt that are trading at reasonable valuations.
LULULEMON ATHLETICA INC (LULU) is a large-cap growth stock in retail (apparel). The rating under our Warren Buffett-based strategy changed from 85% to 92% based on the company’s underlying fundamentals and the valuation of the stock. A value of 80% or more usually indicates the strategy has some interest in the stock, and a value greater than 90% usually indicates a strong interest.
Company Description: lululemon Athletica Inc. is a designer, distributor and retailer of lifestyle-inspired sportswear and accessories. The company’s segments include company-operated businesses and direct sales to consumers. The clothing range includes items such as pants, shorts, tops and jackets for a healthy lifestyle, including sporting activities such as yoga, running, exercising and other sweaty activities. It also offers fitness accessories. The stores operated by the company include approximately 523 stores in 17 countries. The retail stores are mainly located on street locations, in 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 operates through MIRROR, which offers home fitness through an exercise platform; Operation of outlets and temporary locations.
The following table summarizes whether the stock passes all of the tests for this strategy. Not all of the criteria in the following table are weighted equally or are independent, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
|PREDICTABILITY OF RESULTS:||HAPPEN|
|RETURN ON EQUITY:||HAPPEN|
|INCOME ON TOTAL CAPITAL:||HAPPEN|
|FREE CASH FLOW:||HAPPEN|
|USE OF PROFIT SUPPLEMENT:||HAPPEN|
|RETURN INITIAL RATE:||HAPPEN|
Detailed analysis by LULULEMON ATHLETICA INC
Complete Guru Analysis for LULU
Full Factor Report for LULU
More details on Validea’s Warren Buffett strategy
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, becoming one of the richest men in the world in the process. (Forbes puts his net worth at $ 37 billion.) Despite his fortune, Buffett is known for leading a humble lifestyle by billionaire standards. His primary residence remains the gray plastered Nebraska house he bought for $ 31,500 nearly 50 years ago, according to Forbes, and his folk manner and love for simple Midwestern delights – a cherry Coke, a good burger, and a good book are all near the top of the list – are well documented.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. More information about Validea can be found here
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.