Search

Home > Stock Club > #277: Lululemon, the Market’s Most Undervalued Stock?
Podcast: Stock Club
Episode:

#277: Lululemon, the Market’s Most Undervalued Stock?
Category: Business
Duration: 00:53:54
Publish Date: 2025-09-11 08:00:00
Description:

In 2023, you’d be hard-pressed to find a Wall Street analyst who wasn’t in love with Lululemon. The stock was a classic example of a long-term, buy-and-hold winner, with a strong brand, enviable profit margins, and plenty of expansion opportunities.

However, coming into 2025, the company’s façade started to crack, with revenue growth slowing to single digits and comparable in-store sales falling. It appears the American market may be reaching saturation, with competition hot on Lulu’s heels. On top of that, tariffs are taking a healthy bite out of the bottom line, leaving its EBITDA “on the floor.” The stock is now the worst-performing name on the S&P 500 in 2025.

That said, international markets—particularly in China—remain vibrant, and Lulu hopes to reinvigorate domestic sales through R&D innovation. Is the market’s pricing an overreaction, or a reasonable adjustment for a brand transitioning from growth to value?

Mike also touches on Microsoft’s agreement with recent IPO Nebius, which sent the stock soaring.

Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.

We are running a three-month free trial for our followers.

No commitment, cancel anytime.

Click here to grab your trial.

Become a successful investor by checking out all the content MyWallSt has to offer:
Total Play: 0

Some more Podcasts by MyWallSt

200+ Episodes
Stock Club     1