Lululemon Athletica Inc (LULU) is scheduled to announce its second-quarter earnings after the market closes on Thursday. The stock has faced a challenging year, declining by 27.67% over the past twelve months and 47.64% year-to-date. As investors await the earnings release, let’s delve into the technical analysis of Lululemon stock and see how it aligns with Wall Street’s expectations, which currently stand at $2.92 in EPS and $2.409 billion in revenue.
The technical picture for Lululemon stock presents a mixed outlook, with some indicators suggesting a potential for a bullish move while others indicate a more cautious approach. The stock is currently trading at $262.96, slightly below its eight-day simple moving average (SMA) but above its 20-day SMA. This indicates a short-term bullish trend. However, the 50-day SMA sits higher, and the 200-day SMA is significantly above, both representing bearish signals as the stock remains below these key levels.
The Moving Average Convergence Divergence (MACD) indicator is currently negative, further suggesting a bearish momentum. Meanwhile, the Relative Strength Index (RSI) stands at 50.46, which falls within the neutral range, implying neither an overbought nor oversold condition. The Bollinger Bands are relatively narrow, indicating limited volatility and hinting at a potential upcoming price contraction.
Overall, while there are signs of some buying pressure, the technical indicators point toward a cautious approach as Lululemon stock navigates a mixed trend environment.
Analysts currently hold a ‘Buy’ rating on Lululemon stock with an average price target of $336.33. This suggests a potential upside of 26.95% based on the recent analyst ratings. As investors wait for the earnings release, it will be crucial to watch the stock’s reaction to the results and how it responds to the mixed signals presented by technical analysis.
