Not a good buy right now: price is in a clear downtrend (bearish moving-average stack) and lacks a confirmed momentum reversal.
Current price (173.6) is sitting on first support (S1=173.647). With bearish trend structure, an impatient entry here risks an immediate breakdown toward S2 (167.74).
Options positioning is mixed-to-slightly bearish short-term (volume put/call > 1), not the kind of strong risk-on confirmation you want when the chart is weak.
Sentiment has some positives (activism/CEO change narrative, Michael Burry increasing stake, Congress net buying), but fundamentals show margin/EPS pressure and insiders are selling aggressively—this combination argues against buying “right now.”
Momentum: MACD histogram is negative (-2.584) and still below zero; while it’s “contracting” (selling pressure easing), it’s not a confirmed bullish turn.
RSI(6)=41.36: neutral-to-weak (not oversold), suggesting there’s room to fall before mean-reversion buyers are forced in.
Levels: Pivot 183.21 overhead (acts as a key reclaim level). Immediate support is S1=173.65 (basically current price); if it fails, next support is S2=167.74. Resistances: 192.77 then 198.68.
Pattern-based odds (provided): near-term bias skews negative (next week expected -10.1%), reinforcing that the current setup is not an “impatient buy.”
Options Data
Bullish
Open Interest Put-Call Ratio
Neutral
Option Volume Put-Call Ratio
Open interest put/call ratio 0.86: slightly more calls than puts in OI (mildly constructive positioning).
Volume put/call ratio 1.04: puts slightly outweigh calls in today’s flow (slightly bearish/defensive near-term tone).
Options activity is muted vs normal: today’s volume is ~58% of the 30-day average, suggesting no strong “panic bottom” or aggressive dip-buying signal.
Volatility: 30D IV ~45.16 vs HV ~40.84 (IV premium is modest); IV percentile ~52.8 (middle of range), not screaming “capitulation.”
Short-term IV trend is cooling (5D/10D IV averages in the mid/high 60s vs current ~45), implying the market is pricing less near-term shock now than recently.
Technical Summary
Sell
10
Buy
2
Positive Catalysts
Event-driven: ongoing activism/board changes and CEO transition can act as a catalyst if a strong CEO hire or strategic shift is announced.
News sentiment: Michael Burry increased holdings to 100,000 shares and called it a “tempting” acquisition candidate—supports a floor narrative.
Demand/ops: company has been able to work through excess inventory; international/China strength has been a recurring bullish talking point.
Political flow: Congress trading over last 90 days shows 4 purchases and 0 sales (net positive signal).
Net Income: $306.8M, -12.80% YoY (profit contraction).
EPS: $2.59, -9.76% YoY (earnings pressure).
Gross Margin: 55.5%, -5.01% YoY (margin compression is the key negative trend).
Takeaway: growth is still positive, but the quality of growth is weaker due to margin/EPS deterioration—this reduces the attractiveness of buying into a falling chart.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent analyst tone is largely Neutral/Hold/Equal Weight (no strong broad-based “Buy” wave in the provided updates).
Price targets were generally nudged up into early 2026 (roughly ~$190–$228 range), implying upside vs $173.6, but conviction remains tempered.
Pros (Wall St. view): international/China resilience, inventory discipline efforts, potential governance/leadership reset from activism + CEO change.
Cons (Wall St. view): tougher U.S./Americas outlook per survey work, margin pressure into FY26, and uncertainty until the new CEO strategy is clear.
Net: Wall Street sees valuation upside, but the consensus stance is “wait-and-see,” aligning with a Hold (not a buy right now).
Wall Street analysts forecast LULU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 207.12 USD with a low forecast of 146 USD and a high forecast of 303 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
Wall Street analysts forecast LULU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 207.12 USD with a low forecast of 146 USD and a high forecast of 303 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
21 Hold
0 Sell
Hold
Current: 170.090
Low
146
Averages
207.12
High
303
Current: 170.090
Low
146
Averages
207.12
High
303
JPMorgan
Neutral
maintain
$203 -> $209
AI Analysis
2026-01-20
Reason
JPMorgan
Price Target
$203 -> $209
AI Analysis
2026-01-20
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Lululemon to $209 from $203 and keeps a Neutral rating on the shares. After having hosted a meeting with the company's VP of Investor Relations at the ICR Conference, the analyst raised the firm's Q4 EPS estimate and is modeling FY26 EPS of $12.33, compared to the Street at $12.65.
Deutsche Bank
Hold
maintain
$228
2026-01-08
Reason
Deutsche Bank
Price Target
$228
2026-01-08
maintain
Hold
Reason
Deutsche Bank resumed coverage of Lululemon with a Hold rating and $228 price target. The firm resumed coverage of global brands, off-price, and specialty beauty retail. Following a "surprisingly strong" year for retail, Deutsche is entering 2026 with optimism as it anticipates a "volatile but broadly risk-on" macro environment, the analyst tells investors in a research note. The firm sees solid top-line trends, particularly in the first half of the year, due to easier weather comparisons and a boost in tax refunds.
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