Nike And Lululemon Capitalizing On Exercise And Fashion

By BubbleBustInvesting:Will Lululemon (LULU) beat or miss estimates on September 7th? Some stock followers are optimistic. I'm not. Here is why: (click to enlarge)

By BubbleBustInvesting.com:For every momentum stock, there comes a point when good news isn’t good enough. For Lululemon’s stock, this point must have arrived. A good earnings report last week wasn’t good enough to propel the stock higher—the stock sold off. Is it just a pause before another ascend to the moon or the beginning of a descend down to earth?

Lululemon (LULU) and Under Armour (UA) have become powerful brands and both have been regarded as the next Nike (NKE) in the athletic apparel industry. But their popularity with investors has overvalued their stock prices based on a discounted cash flow valuation (15% discount rate), which is reflected in the Growth Price (DCF).

Lululemon has successfully produced high-end workout clothes that transition easily from the yoga studio to the street, and sportswear brands such as Nike and Under Armour are looking to cash in on the winning formula.   Gwen Manto, former Chief Merchandising Officer at Sports Authority and Dick’s Sporting Goods, told Credit Suisse analysts on a recent conference call this month that athletic brands are rushing to make their workout gear more fashionable, in hopes of cashing in on the same high margins Lululemon has enjoyed.  

Miriam Metzinger submits: Stocks discussed the in-depth session of Jim Cramer's Mad Money TV Program, Monday February 7. Lululemon (LULU)

strong>By Delian Naydenov: Introduction

By Cris Frangold: Yoga and exercise are not just good for you, they appear to be a good investment as well. That is if you take a look at the recent performance of Canadian clothing maker Lululemon Athletica (LULU). Despite its odd name and ticker symbol, this company has been doing really well lately.

By Valuentum: Athletic clothing retailer Lululemon (LULU) reported fantastic second quarter results Friday. Sales increased 33% year-over-year to $282.6 million, roughly in-line with consensus estimates. Earnings per share, excluding a tax adjustment, grew 31% to $0.34, about a penny better than expected.