Lululemon (LULU) closed at $168.07 in the latest trading session, marking a +0.36% move from the prior day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the athletic apparel maker had gained 15.16% over the past month, outpacing the Consumer Discretionary sector's gain of 4.09% and the S&P 500's gain of 5.49% in that time.
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 $0.70 per share. This would mark year-over-year growth of 27.27%. Meanwhile, our latest consensus estimate is calling for revenue of $754.10 million, up 16.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.62 per share and revenue of $3.75 billion, which would represent changes of +20.31% and +14.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LULU. 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.
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.
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 5.13% higher within the past month. LULU is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 36.26. This represents a premium compared to its industry's average Forward P/E of 15.41.
We can also see that LULU currently has a PEG ratio of 2.01. 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 industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 40% 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.
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