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Is lululemon athletica (LULU) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors focused on the Consumer Discretionary space have likely heard of lululemon athletica (LULU), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.

lululemon athletica is one of 245 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. LULU is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for LULU's full-year earnings has moved 7.43% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, LULU has returned 45.79% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 21.53% on a year-to-date basis. As we can see, lululemon athletica is performing better than its sector in the calendar year.

Breaking things down more, LULU is a member of the Textile - Apparel industry, which includes 21 individual companies and currently sits at #188 in the Zacks Industry Rank. On average, stocks in this group have gained 30.81% this year, meaning that LULU is performing better in terms of year-to-date returns.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to LULU as it looks to continue its solid performance.


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