5 Most Undervalued Retail Stocks to Invest In Now

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1. Lululemon Athletica Inc. (NASDAQ:LULU)

Lululemon Athletica Inc. (NASDAQ:LULU) is one of the most undervalued retail stocks to invest in now. Citi cut the price target on Lululemon Athletica Inc. (NASDAQ:LULU) to $185 from $210 on March 23, reiterating a Neutral rating on the shares. The stock also received a rating update from BTIG on March 18, with the firm lowering the price target on Lululemon Athletica Inc. (NASDAQ:LULU) to $225 from $250 and reaffirming a Buy rating on the shares.

The rating updates came after the company reported its fiscal Q4 and full-year results, with BTIG also citing below-consensus Q1 guidance. The firm told investors in a research note that although Lululemon Athletica Inc.’s (NASDAQ:LULU) fiscal Q4 results exhibited signs of sequential top-line progress in the Americas, Q1 guidance points towards a sequential step back as the company takes the early steps to return to historical levels of full-price selling. It further stated that while the 2026 guidance is below consensus, the outlook is still not reflective of a hard reset on the business.

Founded in 1988, Lululemon Athletica Inc. (NASDAQ:LULU) is a luxury athletic apparel, footwear, and accessories retailer. It sells leisure-athletic wear and accessories such as socks, bags, and yoga mats for fitness activities.

While we acknowledge the potential of LULU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LULU and that has 100x upside potential, check out our report about the cheapest AI stock.

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