Lululemon to Report Q4 Earnings: Analysts Weigh In on Stock Outlook

Lululemon Athletica Inc. LULU is set to announce its fourth-quarter earnings this Thursday. Analysts are anticipating earnings per share (EPS) of $5.85, along with revenues projected at $3.57 billion. The company will release its results after market hours.

Over the past year, the stock has declined by 13.27%, with a year-to-date decrease of 9.27%.

In this article, we will analyze the technical setup of Lululemon’s stock leading up to the earnings report and its alignment with Wall Street expectations.

Read also: Top Wall Street Forecasters Revamp Lululemon Athletica Price Expectations Ahead Of Q4 earnings

Technical Analysis of LULU Stock Ahead of Q4 Earnings

Chart created using Benzinga Pro

Lululemon’s stock finds itself in a competitive market environment. Currently, the stock is trading below its 5-, 20-, and 50-day exponential moving averages, indicating a strong bearish trend. However, the presence of slight buying pressure suggests potential shifts in market sentiment.

The current stock price of LULU is $337.79, which is above both its eight-day simple moving average of $329.61 and its 20-day simple moving average of $334.50, signaling bullish potential. Moreover, trading above the 200-day simple moving average of $318.16 indicates that Lululemon maintains a long-term uptrend, despite facing short-term challenges.

Nonetheless, the bearish argument remains robust, as the 50-day simple moving average is significantly higher at $367.34, indicating a technical downtrend for LULU.

The Moving Average Convergence Divergence (MACD) indicator is currently at -10.29, which further emphasizes the ongoing bearish momentum. The Relative Strength Index (RSI) at 46.4 suggests a neutral market position, implying the possibility for further price declines. Investors should closely monitor for a breakout above the 50-day moving average to confirm a potential price recovery, while failure to maintain above the 20-day moving average may lead to increased downward pressure.

Analyst Ratings and Consensus for LULU Stock

Ratings & Consensus Estimates: The consensus rating among analysts for LULU stock is currently a Buy, with a price target set at $396.19. Recent ratings from firms such as Needham, Citigroup, and Telsey Advisory Group anticipate an 18.90% upside for LULU, with an average price target of $401.67.

Price Action: As of the time of publication, Lululemon’s stock was trading at $336.51.

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