While lululemon athletica (NASDAQ:LULU) 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.
Austin Smith and Eric Bleeker
Jan 15, 2013 at 7:00PM
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