Lululemon (LULU) ended the recent trading session at $315.84, demonstrating a +1.68% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq increased by 0.72%.
The the stock of athletic apparel maker has risen by 21.5% in the past month, leading the Consumer Discretionary sector's gain of 17.51% and the S&P 500's gain of 9.86%.
The upcoming earnings release of Lululemon will be of great interest to investors. 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. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 6.57% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.91 per share and a revenue of $11.19 billion, indicating changes of +1.84% and +5.69%, respectively, from the former 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Lululemon holds a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 20.84. This valuation marks a premium compared to its industry's average Forward P/E of 14.45.
It is also worth noting that LULU currently has a PEG ratio of 2.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 202, finds itself in the bottom 19% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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