LULU vs NKE: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and NIKE, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
NIKE, Inc. · Consumer Cyclical
$42.62
+45.5% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
NKE |
| Current Price |
$128.98 |
$42.62 |
| Fair Value Estimate |
$525.85 |
$62.00 |
| Upside to Fair Value |
+307.7%
|
+45.5%
|
| Market Cap |
$15.1B |
$63.0B |
| Forward P/E |
9.7x
|
27.9x
|
| EV / EBITDA |
5.6x
|
20.7x
|
| Price / Sales |
1.4x
|
1.4x
|
| Price / FCF |
16.4x
|
19.4x
|
| Revenue Growth YoY |
+0.8%
|
-9.8%
|
| Gross Margin |
56.6%
|
42.7%
|
| Operating Margin |
19.8%
|
8.0%
|
| Return on Equity |
34.8%
|
24.4%
|
| Dividend Yield |
0% |
3.8% |
| FCF Yield |
6.09%
|
5.2%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
| Metric |
LULU |
NKE |
| Zone Low |
$394.39 |
$44.00 |
| Zone High |
$446.97 |
$50.00 |
| In Buy Zone? |
Yes
|
Yes
|