Ever since lululemon (NAS: LULU) began opening stores and selling its high-end women's athletic clothing with a yoga and personal fitness spin, it's been a hit, and the stock has been a strong performer as a result. Investors, however, need to know that this isn't a bet without risks. In this video, Motley Fool retail analyst Jeremy Bowman takes us through the big names who lately have been emulating lululemon's style for cheaper. He also tells us that, due to the stock's sky-high P/E ratio, it may really be priced to perfection, and that any bad-news bumps in the road could mean significant hits to its share price.

Lululemon has been a longtime pick of Motley Fool superinvestor David Gardner, and has soared 108.23% since he recommended it in December 2010. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential, and he helps like-minded investors profit while Wall Street catches up. I invite you to learn more about how he picks his winners with a free, personal tour of his flagship servi, Supernova. Inside, you'll discover the science behind his market-trouncing returns. Just click here now for instant access.


The article What Are Lululemon's Biggest Risks? originally appeared on Fool.com.

Isaac Pino and Jeremy Bowman have no position in any stocks mentioned. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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