Lululemon Athletica Inc. (NASDAQ:LULU) is one of the high-growth, low P/E stocks to buy now. On February 12, Lululemon Athletica Inc. (NASDAQ: LULU) shares fell 2% after Bloomberg reported new complaints about its see-through leggings, the second such issue in recent weeks.
Customers flagged problems with the “heart scatter” leggings on Reddit and the company’s site, echoing earlier transparency concerns that led Lululemon to pull and later reintroduce its “Get Low” line with disclaimers. The recurring product issues come amid a 55% stock drop over the past year, slowing sales, and the search for a new CEO.
On January 22, BTIG analyst Janine Sticher reiterated that there is a significant investment opportunity in the company, driven by its execution strategy rather than immediate product innovations. Consequently, the analyst has reiterated a Buy rating on the stock with a $303 price target.
According to Sticher, Lululemon remains in the show-me camp as it lacks near-term catalysts to accelerate growth. Consequently, investors remain on edge, awaiting a turnaround to gain traction. Nevertheless, the analyst is confident that opportunities exist across presentation merchandising and marketing coordination that could improve in the long run.
The remarks come on the heels of Lululemon Athletica Inc. pausing online sales of its new workout line, ‘Get Low’. The company plans to bring the collection back to e-commerce channels in North America soon.
“The collection remains available in our stores in North America, but we have temporarily paused sales online in the market to better understand some initial guest feedback and support with product education,” said a Lululemon spokesperson.
Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails premium technical athletic apparel, footwear, and accessories for yoga, running, training, and, generally, “sweaty pursuits”. The company focuses on high-quality, innovative, and functional designs for both men and women and sells products through a network of branded physical stores, an e-commerce website, and authorized retail outlets.
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Disclosure: None. This article is originally published at Insider Monkey.
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