Over the last six months, Lululemon shares have sunk to $280.25, producing a disappointing 12.7% loss - worse than the S&P 500’s 5.5% drop. This may have investors wondering how to approach the situation.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel retailer stocks fared in Q4, starting with Lululemon (NASDAQ:LULU).
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Quality compounders are flywheels.
Said differently, they’re businesses that generate heaps of profits and consistently reinvest them to produce even more profits.
Rinse and repeat.
"Just how much did Marjorie Taylor Greene make when she bought the dip?" Alexandria Ocasio-Cortez asks in the caption of a YouTube video calling for a ban on Congressional trading.
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner.
Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
The Nasdaq 100 Index remains under pressure after forming a death cross pattern a few weeks ago. It has retreated to $18,257, down by over 17.8% from its highest point this year.
Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does LULULEMON ATHLETICA INC (NASDAQ:LULU) meet these key criteria? Let’s find out.
Retail sector momentum is building as some global brands show improving visibility, while diversified specialty retailers benefit from operational gains and product mix strength.
