Lululemon (LULU) closed at $171.23 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the athletic apparel maker had gained 16.79% in the past month. In that same time, the Consumer Discretionary sector gained 3.93%, while the S&P 500 gained 3.16%.
Investors will be hoping for strength from LULU as it approaches its next earnings release. The company is expected to report EPS of $0.70, up 27.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $754.10 million, up 16.07% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.62 per share and revenue of $3.75 billion. These results would represent year-over-year changes of +20.31% and +14.18%, respectively.
Any recent changes to analyst estimates for LULU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.13% higher within the past month. LULU currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 36.66 right now. For comparison, its industry has an average Forward P/E of 15.09, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.04. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
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