Lululemon (LULU) closed the most recent trading day at $326.72, moving +0.41% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.24%.
Prior to today's trading, shares of the athletic apparel maker had gained 8.05% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.61% and the S&P 500's gain of 5.34% in that time.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. The company is expected to report EPS of $0.49, down 48.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $821.74 million, down 6.98% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $4.04 billion. These results would represent year-over-year changes of -11.36% and +1.43%, respectively.
Investors should also note any recent changes to analyst estimates for LULU. Recent revisions tend to reflect the latest near-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. LULU is currently a Zacks Rank #3 (Hold).
Digging into valuation, LULU currently has a Forward P/E ratio of 74.53. Its industry sports an average Forward P/E of 40.65, so we one might conclude that LULU is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 4.07 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 was holding an average PEG ratio of 4.54 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 15% 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.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
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