Lululemon: Why the Growth Isn't Endless

While lululemon athletica has exploded in popularity recently as a high-end retailer of women's fitness and yoga apparel, the market may expect more from the stock than it can deliver. Its sky-high valuation shows that the stock is priced to perfection, and while growth is strong for the company at the moment, being so dependent on a single fitness trend, such as yoga, is historically not without its perils. In this video, Motley Fool analyst Austin Smith tells us what the dangers can be for investors with a very pricey, trendy stock that is on the radar of a lot of competitors.

Although Lululemon took a serious hit today, the company has been a longtime pick of Motley Fool superinvestor David Gardner, and has soared 108.23% since he recommended it in December 2010. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential, and he helps like-minded investors profit while Wall Street catches up. I invite you to learn more about how he picks his winners with a free, personal tour of his flagship service: Supernova. Inside, you'll discover the science behind his market-trouncing returns. Just click here now for instant access.

The article Lululemon: Why the Growth Isn't Endless originally appeared on Fool.com.

Austin Smith has no position in any stocks mentioned. Eric Bleeker has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica and Under Armour. The Motley Fool owns shares of Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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