LULU vs QCOM: Which Is the Better Buy?

Side-by-side comparison of Lululemon Athletica Inc. and QUALCOMM Incorporated — 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
QUALCOMM Incorporated · Technology
$134.47
+77.7% 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 QCOM
Current Price $128.98 $134.47
Fair Value Estimate $525.85 $239.00
Upside to Fair Value +307.7% +77.7%
Market Cap $15.1B $143.6B
Forward P/E 9.7x 26.8x
EV / EBITDA 5.6x
Price / Sales 1.4x 3.2x
Price / FCF 16.4x 11.1x
Revenue Growth YoY +0.8% +8.7%
Gross Margin 56.6% 55.1%
Operating Margin 19.8% 27.1%
Return on Equity 34.8% 21.6%
Dividend Yield 0%
FCF Yield 6.09% 9.0%
Analyst Consensus Hold Hold
Investment Thesis
LULU — Lululemon Athletica Inc.
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…
QCOM — QUALCOMM Incorporated
Qualcomm Incorporated is a leading semiconductor company specializing in wireless chipsets and IP licensing, with dominant positions in 5G modems via QCT (87% of revenue) and steady QTL royalties. The business excels through a vast patent moat, diversification into automotive and IoT, and robust growth (revenue +13% YoY to $44B in FY2025), but faces risks from Apple modem shifts and China exposur…
Accumulation Zones
Metric LULU QCOM
Zone Low $394.39 $179.00
Zone High $446.97 $203.00
In Buy Zone? Yes Yes
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