• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is Lululemon Athletica eyeing a Santa Claus rally to the April highs?
Investing

Is Lululemon Athletica eyeing a Santa Claus rally to the April highs?

by December 7, 2022
by December 7, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

With a monthly gain of 14.64%, Lululemon Athletica Inc. (NASDAQ:LULU) could be looking to end the year strong. The stock has lost by a similar margin in the last one year, with the recoveries giving hope of a potential Santa Claus rally. The quarter results will tell if LULU maintains the uptrend for a potential return to $386 or finish at $410. 

Trading at $371 after a slight correction, investors await with enthusiasm Lululemon’s quarter results on December 08. Wall Street has earmarked earnings per share of $1.95 in the quarter, a year-over-year increase of 20.4%. The company is expected to record revenues of $1.8 billion or £1.47 billion, an increase of 24.4%. Will Lululemon surprise with positive retail news?

Lululemon has notoriously exceeded earnings estimates in its previous four quarters. For the last quarter, the company posted a surprise 18.28% increase in earnings to $2.20. The EPS exceeded estimates of $1.86 per share. A repeat of this earnings trend could attract buyers to the apparel stock. Investors will also be looking for post-earnings guidance as key triggers for the next price level of LULU. 

LULU slides ahead of earnings after a bullish month

LULU Chart by TradingView

On the technical outlook, LULU has slid after hitting resistance at $386. The RSI comes from the overbought level, meaning buyers are taking profits after a bullish month.

The level to watch as the earnings linger is $366. If earnings come strong and guidance excites, this could be an important reversal zone. The level also coincides with the 20-day moving average and ascending trendline.

What you should do ahead of earnings

We recommend buying LULU after the earnings report. Keep an eye on the entry of buyers at $366 if the results are exciting. $386 would remain the immediate target. However, LULU can ride to $410 on the current momentum.

Conversely, if the earnings disappoint, LULU could slide to find support at $340.

The post Is Lululemon Athletica eyeing a Santa Claus rally to the April highs? appeared first on Invezz.

You Might Also Like
  • Options Gamma Explained: Delta Sensitivity To Price
  • BTC hovers near $17K as analyst identifies area of ‘real max pain’
  • Delta Air Lines Q4 results: CEO expects strong demand for ‘several years’
  • Should I buy Intel shares after the current dip?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Carvana stock crashed another 45% on Wednesday: here’s why
next post
GameStop Q3 results: ‘I’m looking in the short-term for downside’

You may also like

ECB follows trend of US an UK with 50 bps...

December 15, 2022

25+ US economy statistics: forecast, trends and facts for 2023

January 9, 2023

European stocks rise to highest point since May 2022

January 10, 2023

“Buy the close, sell the open” still rewards for carrying...

November 28, 2022

Star investor David Tepper is ‘leaning short’ on equities: here’s...

December 22, 2022

3 reasons why the December NFP report matters for markets

January 7, 2023

Fed’s preferred inflation gauge eases to 6.0%: time to turn...

December 1, 2022

Pinterest stock price forecast: Piper Sandler sees a 25% upside

December 13, 2022

14 events that shaped financial markets in the first 11...

November 29, 2022

IDS share price is at risk amid rising Royal Mail...

December 22, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Nike stock up 12% on Q2...

    December 20, 2022

    Silvergate CEO says short-sellers spreading misinformation

    December 6, 2022

    Leon Cooperman shares market outlook following...

    January 6, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here