Shares of Lululemon Athletica Inc (LULU) registered their largest single-day surge in three weeks on Monday, after the retailer indicated a strong holiday shopping season as it revised up its fourth-quarter forecasts for both revenue and earnings.
Lululemon shares closed higher for a second consecutive trading session on NASDAQ on Monday. It has also been the sharpest daily surge since December 26th. The stock went up 5.73% ($7.57) to $139.73, after touching an intraday high at $144.98, or a price level not seen since November 2nd ($145.45).
Shares of Lululemon Athletica Inc have risen 14.90% so far in 2019 compared with a 3.33% gain for the benchmark index, Nasdaq 100 (NDX).
In 2018, Lululemon Athletica’s stock surged 54.74%, thus, it again outperformed the Nasdaq 100, which registered a 1.04% loss.
The athleisure retailer said it now expected adjusted earnings of $1.72 to $1.74 per share during the fiscal quarter ending on February 3rd. That represents an upward revision from a prior forecast pointing to quarterly earnings of $1.64 to $1.67 per share.
The company also said it projected net revenue of $1.14 billion to $1.15 billion during the fourth quarter, up from a range of $1.12 billion to $1.13 billion, as expected previously.
“The momentum in our business remained strong throughout the holiday season, reflecting the ongoing success of our product offerings and our connection with guests around the globe,” Calvin McDonald, Lululemons Chief Executive Officer, said in a statement, cited by CNBC.
According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Lululemon Athletica Incs stock price, have a median target of $165.00, with a high estimate of $200.00 and a low estimate of $77.00. The median estimate represents an 18.08% upside compared to the closing price of $139.73 on January 14th.
The same media also reported that 22 out of 37 surveyed investment analysts had rated Lululemon Athletica Inc’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Lululemon Athletica Inc (LULU) are presented as follows:
Central Pivot Point – $133.00
R1 – $136.67
R2 – $141.18
R3 – $144.85
R4 – $148.52
S1 – $128.49
S2 – $124.82
S3 – $120.31
S4 – $115.80