Lululemon (LULU) closed the most recent trading day at $170.30, moving -5.38% from the previous trading session. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.55%.
Prior to today's trading, shares of the athletic apparel maker had gained 1.15% outpaced the Consumer Discretionary sector's loss of 10.81% and lagged the S&P 500's gain of 3.83%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company's earnings per share (EPS) are projected to be $2.22, reflecting a 22.65% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.49 billion, reflecting a 3.78% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.9 per share and revenue of $10.98 billion. These totals would mark changes of -11.89% and +3.72%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Right now, Lululemon possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 13.95. This valuation marks a discount compared to its industry average Forward P/E of 16.57.
One should further note that LULU currently holds a PEG ratio of 11.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 2.48 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 201, finds itself in the bottom 19% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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