LULU and COST are seeing plenty of analyst attention after their quarterly results
As quarterly results continue to roll in, two retail stocks are in the spotlight today. Both Lululemon Athletica Inc (NASDAQ:LULU) and Costco Wholesale Corporation (NASDAQ:COST) reported earnings, and plenty of analysts are chiming in on both after the events.
Lululemon Stock Plummeting
Though Lululemon reported better-than-expected third-quarter results, the company's current-quarter forecast is weighing on the shares today, with LULU down 10.6% to trade at $334.25 at last check.
No fewer than six analysts raised their price targets, however. J.P. Morgan cited untapped opportunity internationally, raising its price objective to $440 from $414, while Piper Sandler noted that the stock is still well-positioned heading into the holiday quarter due to "brand heat" and inventory availability, and hiked its price target to $390 from $350. LULU also received no fewer than three price-target cuts, though the lowest was from UBS to $390 -- still a hefty premium to current levels.
COST Named "Best Idea" Despite Earnings Miss
Costco stock is inching lower, down 0.2% at $480.60 after the discount retailer's fiscal first-quarter earnings and revenue missed estimates. The company, which also saw an increase in operating expenses, cited inflation denting demand.
No fewer than eight analysts chimed in with price-target cuts, with the lowest from Wells Fargo to $450 from $490. The shares did receive some good news, however, as Cowen named COST a "best idea" for 2023. Year-to-date, the equity is down 15.3%.