Lululemon (LULU) closed at $225.53 in the latest trading session, marking a -0.07% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.86%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the athletic apparel maker had gained 10.49% in the past month. In that same time, the Consumer Discretionary sector gained 5.47%, while the S&P 500 gained 3.66%.
LULU will be looking to display strength as it nears its next earnings release, which is expected to be December 11, 2019. The company is expected to report EPS of $0.93, up 24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $896.50 million, up 19.91% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $3.87 billion. These results would represent year-over-year changes of +23.44% and +17.59%, respectively.
Any recent changes to analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. LULU currently has a Zacks Rank of #3 (Hold).
Digging into valuation, LULU currently has a Forward P/E ratio of 47.61. Its industry sports an average Forward P/E of 15.13, so we one might conclude that LULU is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 2.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.