Lululemon (LULU) closed the most recent trading day at $194.34, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.12% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.51% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.09% and the S&P 500's gain of 4.42% in that time.
Investors will be hoping for strength from LULU as it approaches its next earnings release. The company is expected to report EPS of $0.93, up 24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $895.12 million, up 19.72% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $3.85 billion. These results would represent year-over-year changes of +23.44% and +17.16%, respectively.
Any recent changes to analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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, the Zacks Consensus EPS estimate has moved 0.01% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LULU currently has a Forward P/E ratio of 41.47. This valuation marks a premium compared to its industry's average Forward P/E of 14.76.
Investors should also note that LULU has a PEG ratio of 2.28 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 2.23 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.