Editor’s Note: Thank you once again for signing up for Prediction 2022. This video event is scheduled for Tuesday, April 5, at 4 p.m. Eastern time. While we will send you a reminder shortly before getting started, we encourage you to mark it down in your calendar now.
Hello Reader,
The fourth-quarter earnings season is coming to a close soon, but there was still a flurry of earnings reports released this week. One such company was Lululemon Athletica Inc. (LULU), which released its earnings results for its fourth quarter in fiscal year 2021 on Tuesday. All in all, the results were mixed: Lululemon posted earnings of $3.28 per share on revenue of $2.129 billion.
Analysts were expecting earnings of $3.27 per share on revenue of $2.135 billion, so the “athleisure” wear retailer posted a slight earnings surprise and a slight revenue miss. Guidance for full-year 2022 was strong, which was enough to trigger a nice post-earnings pop in LULU shares.
Now, I want to discuss Lululemon with you today because I was a big fan of the company a few years ago. LULU had been steadily growing its sales and earnings in 2018, and I expected its momentum to continue in 2019. I was so bullish on the company that I picked it as my stock for the InvestorPlace 10 Best Stocks for 2019 contest. The stock climbed 91% that year… and I walked away as the winner of the contest.
So, it might surprise you to hear that I am not nearly as bullish on the stock today as I was in 2019, despite the fact that Lululemon was a popular COVID-19 pandemic stock.
In fact, if you take a look below at my Report Card for LULU, you can see that it earns a “C” rating. So, the stock is a “Hold” right now. In other words, it was a stock worth holding into its earnings report, but not one an investor should be snapping up more shares of right now.
I employ eight factors to determine LULU’s grade… and the grades of thousands of other stocks… every week. I reveal exactly what those factors are, and how they come together in my proprietary market-beating stock-grading system, during my Prediction 2022 event on Tuesday, April 5, at 4 p.m. Eastern time.
At that video event, I’ll also discuss…
- A certain type of investment I urge you to buy immediately…
- My No. 1 stock to buy now…
- A stock poised to crash at any moment…
And I’ll share what could be the biggest prediction of my career.
You’ve already registered, so just remember to set some time aside at 4 p.m. Eastern time, next Tuesday, April 5. In the meantime, if you haven’t already, I recommend you give my special report 13 Stocks to Sell Immediately a read. (No. 6 may surprise you.) You can find it here.
I’ll be back in touch tomorrow with a special sector review of the big banks, so stay tuned!
Sincerely,
Louis Navellier