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Why is Lululemon's Stock Selling in the Bargain Bin?
Lululemon (Nasdaq: LULU) has expanded from being a niche yoga retailer to an international fitness super-brand. New CEO Calvin McDonald has tripled its sales in five years and maintained its industry-leading 20% operating margin.
Yet recently, perhaps due to concerns of a slowdown in consumer spending or of rising competition, the stock has been selling for a dirt-cheap valuation. Now priced at just 15x its trailing cash flow, it could an inexpensive opportunity for opportunistic investors to consider.
Would you like to see our official Conviction Rating on Lululemon - meaning whether we…
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