LULU vs RTX: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and RTX Corporation — 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
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
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 |
RTX |
| Current Price |
$128.98 |
$172.90 |
| Fair Value Estimate |
$525.85 |
$136.05 |
| Upside to Fair Value |
+307.7%
|
-21.3%
|
| Market Cap |
$15.1B |
$232.8B |
| Forward P/E |
9.7x
|
32.1x
|
| EV / EBITDA |
5.6x
|
19.2x
|
| Price / Sales |
1.4x
|
2.6x
|
| Price / FCF |
16.4x
|
27.9x
|
| Revenue Growth YoY |
+0.8%
|
+8.7%
|
| Gross Margin |
56.6%
|
20.2%
|
| Operating Margin |
19.8%
|
10.4%
|
| Return on Equity |
34.8%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
3.59%
|
| 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…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
LULU |
RTX |
| Zone Low |
$394.39 |
$102.04 |
| Zone High |
$446.97 |
$115.64 |
| In Buy Zone? |
Yes
|
No
|