Traders Break Down Lululemon Ahead Of Earnings

New Street Advisors' Delano Saporu and Miller Tabak equity strategist Matt Maley discussed Lululemon Athletica Inc LULU Thursday on CNBC's "Trading Nation."

Reopening Beneficiary: Lululemon has failed to meet the high growth expectations of investors, so the company's stock has underperformed so far this year, Saporu said.  As the reopening continues and more people spend money, premium brands like Lululemon will benefit.

A Technical Analysis: Maley said the stock has been making higher lows and higher highs since March. If the company reports better-than-expected earnings, the $343 level will be one to watch, he said. 

If the stock can break $343 it will make another higher high and move above its 200-day moving average, Maley noted, adding that a break of that key level will give the stock much more upside momentum moving forward. 

Lululemon is scheduled to report earnings results after the market closes today.

Price Action: Lululemon has traded as high as $399.89 and as low as $269.28 over a 52-week period.

At last check Thursday, the stock was down 0.81% at $318.19.

Photo by Mike Mozart from Flickr.