In the latest trading session, Lululemon (LULU) closed at $206.47, marking a -3.54% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq appreciated by 0.15%.
The stock of athletic apparel maker has fallen by 12.68% in the past month, lagging the Consumer Discretionary sector's loss of 2.6% and the S&P 500's gain of 3.39%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. On that day, Lululemon is projected to report earnings of $2.86 per share, which would represent a year-over-year decline of 9.21%. Simultaneously, our latest consensus estimate expects the revenue to be $2.53 billion, showing a 6.91% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.42 per share and revenue of $11.18 billion, indicating changes of -1.5% and +5.56%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Lululemon. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Currently, Lululemon is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 14.85. This represents a discount compared to its industry average Forward P/E of 14.91.
Investors should also note that LULU has a PEG ratio of 1.82 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.99.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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lululemon athletica inc. (LULU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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