What triggered me to recommend this today:
Shares of LULU stock have already increased by 17% today due to a strong earnings report. When a share price increases this much, it usually means one of two things: 1) The share price increased too much and now the stock overvalued, or 2) This price increase is just the tip of the iceberg and the share price will continue to increase in value. Needless to say, I think the latter situation is what is really going on right now; the share price will continue to increase.
Quick Profile on Business:
Lulu is a company that provides stylish athletic apparrel for women. It has already developed a name brand, and has had tremendous success.
Important Financial Metrics:
Extremely Profitable:
The profit margin and operating marging are over 14% and 22%, respectively. Return on assets and return on equity are over 27% and 35%, respectively.
Growing Business:
Revenue has increased over 55% from last year. Earnings have increased over 135% since last year.
Cash vs Debt:
Over $178 million dollars of cash compared to zero debt
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