In the latest trading session, Lululemon (LULU) closed at $265.76, marking a +1.55% move from the previous day. The stock lagged the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Heading into today, shares of the athletic apparel maker had lost 22.42% over the past month, lagging the Consumer Discretionary sector's loss of 6.33% and the S&P 500's loss of 6.57% in that time.
The upcoming earnings release of Lululemon will be of great interest to investors. In that report, analysts expect Lululemon to post earnings of $2.60 per share. This would mark year-over-year growth of 2.36%. Simultaneously, our latest consensus estimate expects the revenue to be $2.35 billion, showing a 6.57% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.91 per share and revenue of $11.19 billion, which would represent changes of +1.84% and +5.69%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lululemon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 3.79% downward. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 17.56. This represents a premium compared to its industry's average Forward P/E of 11.68.
Meanwhile, LULU's PEG ratio is currently 2.21. 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 average PEG ratio for the Textile - Apparel industry stood at 1.57 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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