Lululemon (LULU) ended the recent trading session at $327.17, demonstrating a +1.07% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.39%. On the other hand, the Dow registered a loss of 0.27%, and the technology-centric Nasdaq decreased by 0.38%.
Heading into today, shares of the athletic apparel maker had gained 27.49% over the past month, outpacing the Consumer Discretionary sector's gain of 17.05% and the S&P 500's gain of 13.07% in that time.
Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. 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, our latest consensus estimate is calling for revenue of $2.35 billion, up 6.57% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.85 per share and revenue of $11.19 billion, indicating changes of +1.43% and +5.69%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Lululemon is currently a Zacks Rank #3 (Hold).
In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 21.8. This denotes a premium relative to the industry's average Forward P/E of 14.5.
We can also see that LULU currently has a PEG ratio of 2.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.74.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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