1 Reason to Be Very, Very Excited About Lululemon (LULU) Stock Right Now

Core Insights - Lululemon's share price has decreased by 66% since its peak in December 2023, leading to a bearish market sentiment despite potential long-term growth opportunities [1][3] - The current valuation of Lululemon is under 12 times trailing-12-month earnings per share, significantly lower than the S&P 500 index, indicating a potential upside of over 100% if the stock aligns with broader market valuations [3][4] - Lululemon has demonstrated strong financial performance, with revenue and net income increasing by 183% and 197% respectively over the past six years, alongside a gross margin of 58.5% and a debt-free balance sheet [4][5] Valuation and Market Sentiment - The stock is currently trading at a bargain valuation, reflecting low market expectations and a significant disconnect from its historical performance [3][6] - The investment community's negative outlook has contributed to the stock's depressed valuation, despite the company's strong fundamentals [3][4] Competitive Landscape and Future Outlook - While competitive factors and macroeconomic headwinds may pressure near-term results, the company is still considered a quality business with strong pricing power [4][5] - Long-term investors are encouraged to consider the potential for recovery and growth in Lululemon's stock price [5][6]