|Back to main|
Buy or Sell: Lululemon (LULU) - Real Time Insight
3/20/2013 10:48:00 AM
Lululemon ( LULU ) has been a hot stock for many investors over the past few years. The company has seen tremendous earnings growth and it has become a popular pick for investors seeking a top retail name that has potential for further gains.
In fact, in 2012, LULU added about 40%, easily outpacing the retail sector and the broad S&P 500 as well. However, 2013 hasn't been as kind to LULU as the firm has faced a big slump to start the year, and then further issues lately thanks to quality control issues.
The company actually revealed, just a few days ahead of the earnings report, that it was recalling many pants from one of its key lines due to the see-through nature of the fabric's sheer. This information on a line that accounts for nearly 20% of the business helped to push the stock down by nearly 7% in the past five days.
Now, with earnings coming up on Thursday investors are left with a very difficult decision; buy or sell this once high-flying stock?
Reasons to Buy:
Reasons to Sell:
What do you think?
Is this a great time to buy a superb retailer on a dip, or is it the end of LULU's incredible story?
Let us know in the comments below!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
LULULEMON ATHLT (LULU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research