Lululemon Athletica Inc. (NASDAQ: LULU) has been facing challenges in the stock market following a disappointing earnings report last quarter. While many other companies have been experiencing a strong rally, Lululemon has been struggling to regain momentum.

Despite this, analysts have maintained a Buy rating on Lululemon shares, emphasizing aggressive price targets. The stock’s attractive valuation and heavily oversold Relative Strength Index (RSI) reading indicate a potential turnaround in the near future.

During the final months of last year, Lululemon shares surged by over 40% as market sentiment turned positive. However, the stock’s performance took a hit in January, diverging from the broader market trend.

Lululemon reported its Q4 earnings in late March, surpassing expectations on key metrics. Nevertheless, the company issued bleak profit forecasts that disappointed investors. The situation was reminiscent of Nike Inc (NYSE: NKE), Lululemon’s main competitor, which also faced challenges in the same period.

Following the earnings report, Lululemon’s stock price dropped by 20% initially and has since declined by 30%. The company’s current stock price stands at $328.13, down by 2.04%.