Should You Buy Top-Ranked Growth Stock Lululemon (LULU)?

Investing with confidence and making the most of the opportunities presented by the stock market are two aspirations that are shared by both novice and experienced investors alike.

Despite the fact that you may have a certain approach to investing that you rely on, the Zacks Style Scores make it much simpler to locate excellent stocks. These are supplementary indicators that have the ability to evaluate equities according to their value, growth, and/or momentum qualities.

One of the Reasons Why You Should Keep an Eye on This One Growth Stock

The Growth Style Score is a tool that helps investors find corporations that will see long-term, sustainable growth by taking into account expected and historical profits, sales, and cash flow. Growth investors build their portfolios around companies that are financially stable and have a bright future.

(Lululemon) Lululemon Lululemon Athletica Inc. is a company that was established in 1998 and has its headquarters in Vancouver, Canada. The company is a manufacturer of yoga-inspired athletic wear and also produces lifestyle components. This corporation is responsible for the design, production, and distribution of athletic clothes and accessories for female youth, male youth, and female adults.

A Growth Style Score of A and a VGM Score of B are both associated with the stock LULU, which has a Zacks Rank of #3 (Hold). During the current fiscal year, it is anticipated that earnings would increase by 12.4% compared to the previous year, while sales will increase by 12.5%.

Over the course of the past sixty days, six analysts have raised their profits forecast for the fiscal year 2025, while the Zacks Consensus Estimate has remained unchanged at $14.35 per share. In addition, LULU has a rather high average earnings surprise of 9.7%.

On top of that, Lululemon is a cash cow. Cash flow expansion of 28% has been generated by the company, and it is anticipated that the company will report cash flow expansion of 26.6% in the year 2025.

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