Lululemon (LULU) ended the recent trading session at $178.38, demonstrating a -1.66% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.93%.
Coming into today, shares of the athletic apparel maker had gained 4.65% in the past month. In that same time, the Consumer Discretionary sector lost 0.52%, while the S&P 500 gained 1.13%.
Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. In that report, analysts expect Lululemon to post earnings of $2.22 per share. This would mark a year-over-year decline of 22.65%. Simultaneously, our latest consensus estimate expects the revenue to be $2.49 billion, showing a 3.75% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.9 per share and a revenue of $10.98 billion, demonstrating changes of -11.89% and +3.69%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Lululemon is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 14.06. This expresses a discount compared to the average Forward P/E of 16.29 of its industry.
Meanwhile, LULU's PEG ratio is currently 11.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 2.48.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 16% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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