Lululemon (LULU) closed at $207.19 in the latest trading session, marking a +1.5% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the athletic apparel maker had gained 3.03% in the past month. In that same time, the Consumer Discretionary sector gained 6.34%, while the S&P 500 gained 7.08%.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. In that report, analysts expect LULU to post earnings of $0.93 per share. This would mark year-over-year growth of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $896.50 million, up 19.91% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.74 per share and revenue of $3.86 billion, which would represent changes of +23.44% and +17.45%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LULU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. LULU is currently a Zacks Rank #3 (Hold).
Digging into valuation, LULU currently has a Forward P/E ratio of 43.06. Its industry sports an average Forward P/E of 15.18, so we one might conclude that LULU is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 2.37 right now. 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 2.24 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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