Lululemon (LULU) closed at $178.27 in the latest trading session, marking a +0.84% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
Coming into today, shares of the athletic apparel maker had gained 23.14% in the past month. In that same time, the Consumer Discretionary sector gained 7.12%, while the S&P 500 gained 4.87%.
Investors will be hoping for strength from LULU as it approaches its next earnings release. In that report, analysts expect LULU to post earnings of $0.70 per share. This would mark year-over-year growth of 27.27%. Our most recent consensus estimate is calling for quarterly revenue of $754.10 million, up 16.07% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.63 per share and revenue of $3.75 billion. These results would represent year-over-year changes of +20.57% and +14.18%, respectively.
Investors should also note any recent changes to analyst estimates for LULU. 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.
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.
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. The Zacks Consensus EPS estimate has moved 5.43% higher within the past month. LULU currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 38.17. For comparison, its industry has an average Forward P/E of 15.55, which means LULU is trading at a premium to the group.
Meanwhile, LULU's PEG ratio is currently 2.12. 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. LULU's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.
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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