The most recent trading session ended with Lululemon (LULU) standing at $251.08, reflecting a +0.69% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. Elsewhere, the Dow saw a downswing of 1.33%, while the tech-heavy Nasdaq depreciated by 0.13%.
Prior to today's trading, shares of the athletic apparel maker had lost 24.34% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3% in that time.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.60, reflecting a 2.36% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 6.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $14.91 per share and a revenue of $11.19 billion, demonstrating changes of +1.84% and +5.69%, respectively, from the preceding year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 3.85% fall in the Zacks Consensus EPS estimate. Lululemon currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 16.73 right now. This signifies a premium in comparison to the average Forward P/E of 11.04 for its industry.
We can additionally observe that LULU currently boasts a PEG ratio of 2.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% 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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