Lululemon (LULU) Stock Moves -1.08%: What You Should Know
Lululemon (LULU) closed the most recent trading day at $390.78, moving -1.08% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.49%.
Heading into today, shares of the athletic apparel maker had gained 29.48% over the past month, outpacing the Consumer Discretionary sector's gain of 4.92% and the S&P 500's gain of 5.85% in that time.
Lululemon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.40, up 20.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.54 billion, up 25.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.23 per share and revenue of $7.59 billion. These totals would mark changes of +18.49% and +21.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lululemon. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.69% higher. Lululemon is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 42.79. For comparison, its industry has an average Forward P/E of 10.25, which means Lululemon is trading at a premium to the group.
It is also worth noting that LULU currently has a PEG ratio of 2.14. 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. LULU's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
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