Lululemon (LULU) — Deep Value Setup with Technical Reversal Signals
Summary:
Lululemon (LULU) has seen substantial downside over the past several months, declining nearly 58% since early February. Despite the steep correction, multiple technical and fundamental indicators suggest the stock may be approaching a major inflection point.
Technical Outlook:
Price action has now reached a key long-term support zone, as illustrated by the yellow trendline on the chart. Additionally, a bullish divergence has formed on the MACD, a historically reliable signal of momentum reversal when paired with strong support levels.
Fundamental Perspective:
While the company revised its 2025 guidance lower, the underlying fundamentals remain strong. According to Morningstar’s fair value estimate, LULU’s intrinsic value is approximately $295 per share, implying the stock currently trades at a ~64% discount to its assessed business value.
Investment Thesis:
With nearly 3 decades of operational excellence, a loyal customer base, and a proven global brand, Lululemon is unlikely to face long-term solvency or relevance risk. This setup aligns best with long-term investors who are comfortable holding positions through near-term volatility to capitalize on potential multi-year upside.
Timeframe: Monthly (long-term investment horizon)
Summary:
Lululemon (LULU) has seen substantial downside over the past several months, declining nearly 58% since early February. Despite the steep correction, multiple technical and fundamental indicators suggest the stock may be approaching a major inflection point.
Technical Outlook:
Price action has now reached a key long-term support zone, as illustrated by the yellow trendline on the chart. Additionally, a bullish divergence has formed on the MACD, a historically reliable signal of momentum reversal when paired with strong support levels.
Fundamental Perspective:
While the company revised its 2025 guidance lower, the underlying fundamentals remain strong. According to Morningstar’s fair value estimate, LULU’s intrinsic value is approximately $295 per share, implying the stock currently trades at a ~64% discount to its assessed business value.
Investment Thesis:
With nearly 3 decades of operational excellence, a loyal customer base, and a proven global brand, Lululemon is unlikely to face long-term solvency or relevance risk. This setup aligns best with long-term investors who are comfortable holding positions through near-term volatility to capitalize on potential multi-year upside.
Timeframe: Monthly (long-term investment horizon)
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.