In the latest market close, Lululemon (LULU) reached $271.27, with a +1.02% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Coming into today, shares of the athletic apparel maker had lost 5.14% in the past month. In that same time, the Consumer Discretionary sector lost 0.09%, while the S&P 500 lost 0.84%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company is forecasted to report an EPS of $2.60, showcasing a 2.36% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.35 billion, indicating a 6.57% increase compared to the same quarter of the previous year.
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.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. Lululemon presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 18.01. This signifies a premium in comparison to the average Forward P/E of 12.04 for its industry.
Meanwhile, LULU's PEG ratio is currently 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LULU's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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