The U.S. banking sector crisis, PCE inflation report, and Feds restructuring strategy about the interest rate are the key economic outcomes driving the stock market right now.
Amid all the current economic outcomes Lululemon stock retains its rating as a buy option for both; the short and long term.
The stock has outperformed the market expectations and held its ground strong. Overall the U.S. stocks market closed higher on Friday.
This means the market performed well on Friday as another immensely disturbing week comes to an end.
As the new trading week begins, investors are fully focused on what will be the monetary outlook and the monetary policy of the Feds.
The overall market sentiment shows that further relaxation in the monetary policy is unavoidable. All the major U.S stocks index did well on Friday. The Dow Jones Industrial Index surged by 1.2%.
Furthermore, The S&P 500 saw a rise of 1.4%, while the tech-based Nasdaq Stock Exchange increased by 1.6%. On the flip side the small companies index Russell saw an increase of 0.5%.
What Are The Expectation From This Week?
The current week is also very eventful, especially for the investors, investors will keep looking at Fed’s activities.
Their focus will be on the Fed’s policy regarding the interest rate. Moreover, the updates about the banking sector will also be a key discussion.
Moreover, PCE’s report is due to the published on coming Friday, the report will give a clear indication of the future inflation outlook.
Investors are keenly waiting for inflation figures to be published. The inflation report will spark detailed commentary from the Fed’s officials.
The upcoming inflation CPE report will also decide whether the monetary policy will be relaxed or if Federal Reserve officials will take any further strict action.
As the things stand, the overall market is clear that Feds should be more careful about their interest rate policy.
But in case of any unfavorable outcomes on Friday, things can change quickly.
But regardless of the market direction and economic indicators, experts are certain about Lululemon’s performance.
Lululemon Athletica Is a Stock to Buy
Experts are confident Lululemon Athletica (NASDAQ: LULU) will exceed market expectations later this week when it will announce its fourth-quarter report.
Experts have said that the company’s fourth-year earnings report will be staggering. The yoga-wear retailer has been consistently outperforming the market expectation.
Moreover, the consumer buying trend is also likely to be favorable for the retail giant. This means the demand for its product is likely to be high.
The company will announce its fourth-quarter report on 28th March. It is expected that the company’s earnings per share will be around $4.26.
It is expected that the company’s sales will increase by 26.8%, which means as compared to its previous sales, the sales will increase by $2.7 billion.
Company’s this quarter revenue will see an increase of 26%. All these indicators show that consumer highly values Lululemon’s yoga and sportswear.
The company’s management is all set to surprise the market with its staggering market performance.
Experts are predicting a 7% surge in the price of LULU once its fourth-quarter earnings report will be published.
By the end of the last week, Lululemon’s share was being traded at $313.45, this is the highest the stock has peaked so far this year.
In addition to that, the company’s market current market cap is $40 billion. All these numbers make the company one of the most valuable apparel brands.
Even though the company’s current stock value is lower than its all-time high price of $485.83, by 35%.
But another increase in price by 7% is on the cards. Moreover, experts are hopeful that by the end of 2023, LULU will surpass its previous all-time high price mark.
The company’s strong consumer demand and better economic numbers suggest that right now is the time to invest in the company’s share.
So, if you are looking forward to investing in Lululemon you should thoroughly go through the company’s earnings report.