The Gap Inc. (GPS), NIKE, Inc. (NKE): Has Lululemon Athletica inc. (LULU) Become the Perfect Stock?

The real question that Lululemon faces now is whether competitors will be able to swoop in and take advantage of its miscues. The Gap Inc. (NYSE:GPS)‘s Athleta line of stores, which sell yoga and other athletic apparel, has played a key part in the retailer’s comeback in 2012, and The Gap Inc. (NYSE:GPS) has plenty of capacity to expand further. Meanwhile, Nike, Inc. (NYSE:NKE) has used its marketing muscle to bring in yoga representatives of its own to support its competing lines.

Given these problems, it will be tough for Lululemon Athletica inc. (NASDAQ:LULU) to get much closer to perfection than it already is. In fact, if sales and earnings start to stagnate, Lululemon could end up losing ground in the years to come.

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No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you’ll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

The article Has lululemon athletica Become the Perfect Stock? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica and Nike and owns shares of Nike.

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