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

Zacks Equity Research

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? One simple way to answer this question is to take a look at the year-to-date performance of LULU and the rest of the Consumer Discretionary group's stocks.

lululemon athletica is one of 242 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. LULU is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LULU's full-year earnings has moved 2.57% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, LULU has returned 88.33% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 30.57% on a year-to-date basis. This shows that lululemon athletica is outperforming its peers so far this year.

To break things down more, LULU belongs to the Textile - Apparel industry, a group that includes 22 individual companies and currently sits at #85 in the Zacks Industry Rank. On average, this group has gained an average of 35.70% so far this year, meaning that LULU is performing better in terms of year-to-date returns.

Investors in the Consumer Discretionary sector will want to keep a close eye on LULU as it attempts to continue its solid performance.


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