LULU: Not Too Much Room TO Grow!
Lulu has already peaked in its market share, customer base, popularity, hype….There is increasingly much less expensive products—of comparable quality—coming to market. As a result, soon LULU will start losing market share, let alone growing.
Bottom line, today LULU is worth no more than $100…in future, $20-$50.
This stock at this price, PE > 50, is way overvalued. It should be around $100.
Lulu pre pandemic high 2/ 10/ 2020 was 255 dollars, then the money handout came and as usual people lived beyond their means, that money spending is slowing down.
Our Us debt will demand higher interest rates from other countries, If they even want to buy our debt. what would be the interest rate you would charge for anyone in this kind of debt. So it easy to see higher rates coming soon. for many reasons. Putting more pressure on the consumer.
Lulu could fall back to the pre pandemic high at 255 someday.
All the above might be correct in addition to the fact the the current share price is very expensive. It’s a good stock at $75-$100:
1) PE > 50
2) Growth < 20%
3) Future: not clear. Lots of competition
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