Lululemon (LULU) has had a magnificent run since the depths of the market crash of 2008/2009. It has risen over 1000% in that time, including a 30% increase just since the beginning of the year. LULU has approximately 125 stores currently and plans to open another 20-25 stores in the United States this year. It sells yoga and other athletic wear. It has consistently beat revenue and earnings estimates over the last 18 months. That being said, based on valuation and other factors I believe this stock is way overdue for a substantial pullback of 25-40% sometime by the end of year. I based this opinion on the following:
VALUATION: LULU sells at approximately 9 times sales and close to 45 times projected earnings for 2011. Although it is true that LULU?s earnings estimates have been rising since the last earnings reports, I find to hard to justify a valuation
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LM ERICSSON LOGITECH INTERNATIONAL MCAFEE MAXIMUS MANTECH INTERNATIONAL
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