DE vs LULU: Which Is the Better Buy?
Side-by-side comparison of Deere & Company and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Deere & Company · Industrials
$596.74
-29.8% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
DE |
LULU |
| Current Price |
$596.74 |
$116.33 |
| Fair Value Estimate |
$418.72 |
$168.68 |
| Upside to Fair Value |
-29.8%
|
+45.0%
|
| Market Cap |
$161.1B |
$13.2B |
| Forward P/E |
33.7x
|
—
|
| EV / EBITDA |
19.0x
|
5.3x
|
| Price / Sales |
3.4x
|
1.2x
|
| Price / FCF |
42.8x
|
10.3x
|
| Revenue Growth YoY |
+6.7%
|
+4.3%
|
| Gross Margin |
35.4%
|
55.7%
|
| Operating Margin |
18.4%
|
18.2%
|
| Return on Equity |
18.3%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.34%
|
9.69%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Deere & Company operates in the agricultural machinery sector, providing durable equipment critical to farming and construction industries. The business quality is high, supported by a strong 18.3% return on equity and solid gross and operating margins of 35.4% and 18.4%, respectively. However, the stock is currently overvalued, trading approximately 30% above its fair value estimate of $418.72, …
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
Accumulation Zones
| Metric |
DE |
LULU |
| Zone Low |
$314.04 |
$126.51 |
| Zone High |
$355.91 |
$143.38 |
| In Buy Zone? |
No
|
Yes
|