LULU vs WDC: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Western Digital Corporation · Technology
$441.36
-16.8% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
LULU has more upside to fair value
(+1.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
WDC |
| Current Price |
$98.06 |
$441.36 |
| Fair Value Estimate |
$99.50 |
$367.30 |
| Upside to Fair Value |
+1.5%
|
-16.8%
|
| Market Cap |
$11.1B |
$152.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
17.4x
|
| Price / Sales |
1.0x
|
11.8x
|
| Price / FCF |
8.2x
|
47.3x
|
| Revenue Growth YoY |
-4.3%
|
+43.8%
|
| Gross Margin |
56.1%
|
48.9%
|
| Operating Margin |
17.8%
|
34.9%
|
| Return on Equity |
29.7%
|
118.6%
|
| Dividend Yield |
0% |
0.12% |
| FCF Yield |
12.24%
|
2.12%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
Investment Thesis
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
Western Digital designs and manufactures hard disk drives and flash-based storage for data centers, client devices, and consumer markets, and it is currently enjoying an extraordinary demand surge tied to AI infrastructure buildouts. In the most recent quarter, revenue grew 43.8% year over year and earnings grew 1143.2% year over year, while trailing twelve-month gross margin reached 48.9%, opera…
Accumulation Zones
| Metric |
LULU |
WDC |
| Zone Low |
$74.62 |
$275.48 |
| Zone High |
$84.58 |
$312.20 |
| In Buy Zone? |
No
|
No
|