Lululemon (LULU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Lululemon (LULU) closed the latest trading day at $450.64, indicating a -1.71% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Prior to today's trading, shares of the athletic apparel maker had lost 0.84% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.97% and the S&P 500's gain of 4.83% in that time.
The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. In that report, analysts expect Lululemon to post earnings of $4.99 per share. This would mark year-over-year growth of 13.41%. Our most recent consensus estimate is calling for quarterly revenue of $3.19 billion, up 15.04% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Lululemon presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 32. This signifies a premium in comparison to the average Forward P/E of 14.08 for its industry.
Meanwhile, LULU's PEG ratio is currently 1.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 28% 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
