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Point/Counterpoint: Lululemon Versus Gap's Athleta |
Lululemon's been hogging the spotlight, and Gap's been the downward dog for a while now. It's time to turn the tables.
On the surface, it doesn't seem like a fair fight. Lululemon's market cap of $53 billion dwarf's Gap's $6.8 billion. The market clearly thinks its future is the brighter of the two. LULU trades at a forward price to earnings ratio of 81, while GPS trades at a forward price to earnings ratio of 22. But sometimes it pays to be the underdog.
Investing.com's Liz Moyer argues the bull case for Lululemon Athletica Inc (NASDAQ:LULU), while Christiana Sciaudone explains why Gap Inc (NYSE:GPS), and its popular Athleta brand, are the ones to beat. This is Point/Counterpoint. |
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