What Are The P/E Ratio Insights For Lululemon Athletica?

What Are The P/E Ratio Insights For Lululemon Athletica?
What Are The P/E Ratio Insights For Lululemon Athletica?

Lululemon Athletica inc. is one of the designers, distributors, and retailers of lifestyle inspired athletic apparel and accessories. The company’s segments are including company-operated stores and direct to consumers. It is designed for a healthy lifestyle including athletic activities such as yoga, running, training, and other sweaty pursuits. It is offering fitness-related accessories. It is directing to the consumer segment that is including the electronic commerce NASDAQ: LULU Website. Other countries, and region-specific websites, and mobile applications are including mobile applications on in-store devices. These company-operated stores are included approximately 491 stores. Company-operated stores are branded lululemon and ivivva. The ivivva branded stores specialize in athletic wear for female youth. It is also offering weekly live classes, on-demand workouts, and one-on-one personal training through its subsidiary.

P/E Ratio Insights for Lululemon Athletica

  • Looking into the current session, Lululemon Athletica Inc. (NASDAQ: LULU) is trading at $318.85, after an 8.85% decrease. Over the past month, the stock fell by 7.67%, but over the past year, it increased by 60.44%. Long-term shareholders are wanting to start looking into the company’s price-to-earnings ratio.
  • Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders to try to capitalize on the higher share price. The stock is currently under its 52 weeks high by 20.27%.
  • The P/E ratio is used by long-term shareholders to assess the company’s market performance against aggregate market data, historical earnings, and the industry at large.
  • A lower P/E is indicated that shareholders are not expecting the stock to perform better in the future and that the company is probably undervalued.
  • It is showing that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.
  • It is depending on the particular phase of a business cycle, some industries will be performing better than others.
  • Compared to the aggregate P/E ratio of 29.19 in the Apparel Retail industry, Lululemon Athletica Inc. has a higher P/E ratio of 79.32. Shareholders might be inclined to think that Lululemon Athletica Inc. might perform better than its industry group. It’s also possible that the stock is overvalued.
  • P/E ratio is not always a great indicator of the company’s performance. It is depending on the earnings makeup of a company but investors are not able to attain key insights from trailing earnings.

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Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.