BUY Rational Investing with Cameron Stewart, CFA Conviction 5/5 Analysis quality 92 Price target 363 now
The analyst argues Lululemon is significantly undervalued after a 50% stock drop, despite strong fundamentals. He highlights consistent double-digit revenue growth, industry-leading gross profit margins, efficient SG&A management, and robust free cash flow. The company also has a pristine balance sheet with $2 billion in cash and zero debt, actively buying back shares, and trades at a historically low enterprise value to EBITDA multiple of 7.8x, suggesting substantial upside potential.
“Lululemon might be the most undervalued stock in the stock market right now.” — ▶ 00:00:05