Lululemon Athletica Inc LULU is turning back the clock on valuations, trading at levels not seen since 2010 — and hedge fund billionaire Michael Burry is taking notice.

The athletic apparel giant is breaking out on the charts, attracting attention from both value investors and momentum traders alike.

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Despite a 43.35% return on equity, a P/E of just 13.76, and over $1.3 billion in cash on hand, Lululemon shares are cheap.

At $203.62 per share, it sits far below its 200-day moving average of $308.29, signaling that investors may be getting a rare discount on a premium brand.

Burry's Scion Asset Management recently added 50,000 LULU shares to its portfolio, now a hefty 16.43% of the fund. Known for spotting overlooked opportunities, Burry's move adds credibility to the bull case. Some bulls are now eyeing a $400 target over the next year.

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On the technical front, LULU has cleared its eight-day simple moving average (SMA) ($194.71), generating a bullish signal. While the stock remains below the 20-day ($203.14), 50-day ($224.01), and 200-day ($308.29) SMAs, momentum indicators lean bullish.

The MACD (moving average convergence/divergence) indicator has crossed over the signal line (orange), giving out a bullish signal. Though its reading still needs some recovery from a negative 9.64. The RSI (Relative Strength Index) sits at 44.76, suggesting the stock is neither overbought nor oversold. As a result, it could be poised for further gains.

With valuations at 15-year lows, breakout momentum building, and Burry backing the trade, Lululemon looks set for a potential run higher.

Investors may be getting a glimpse of a rare opportunity to buy a premium brand at near-decade-old prices.

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