1 Growth Stock Trading at More Than Half Off Its Peak Could Turn $500 Into $2,000 by 2027

If you are looking for a growth stock that has been knocked down but not knocked out, Lululemon Athletica (NASDAQ: LULU) is one name that still belongs on your radar. It's a candidate to turn a $500 investment into a $2,000 position by 2027 if its recovery story plays out.

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Right now, the stock looks bad and battered. Shares are down more than 40% in 2026, and trading more than 75% below their 2023 peak, which puts them firmly in half-off territory.

This year's sell-off was not really random. Lululemon cut its full-year 2026 outlook in June; it now expects revenue to be in a range of flat to down 1%, in contrast to its previous forecast of 2% to 4% growth, and it's guiding for diluted EPS of $11.15 at the midpoint, well below Wall Street's earlier hopes. The Americas business has slowed, some new product lines missed the mark, and both tariff costs and a messy proxy fight with founder Chip Wilson have added drama.

Lululemon still has a strong growth engine

Underneath that noise, though, the company's core growth engine has not disappeared. It is still growing globally, opening stores in China and Europe, and expanding into categories beyond women's yoga such as menswear, running gear, and lifestyle apparel. In the first quarter, it actually beat expectations on both revenue and profit, suggesting the brand is not collapsing so much as digesting after a period of overexpansion and product missteps.

In my opinion, Lululemon has one of the most recognizable names in performance apparel, a direct-to-consumer footprint that many rivals would love to have, and room to grow in menswear, international, and e-commerce that is far from tapped out.

To stay real, though, a fourfold gain isn't guaranteed and is a bullish push, but you can at least sketch a reasonable path for it to get there. If Lululemon can get back to high-single-digit or low double-digit annual revenue growth by 2027, rebuild its margins toward their historical levels, and convince investors that its tariff and proxy issues are behind it, the market could be willing to apply a growth multiple to those earnings again.

From a stock that has already been cut in half, you do not need perfection to produce big upside. You need steady execution, a few quarters of improved numbers, and a market that eventually remembers that this was once one of the best growth stories in consumer goods.

That is the real point. At today's beaten-down valuation, Lululemon offers a mix of brand strength and growth potential that could make $500 grow much faster than the broad market indexes for investors who are willing to stomach some volatility along the way and give management time to fix what went wrong.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.