Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
Lululemon (LULU) closed the most recent trading day at $458.88, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the athletic apparel maker had gained 16.1% over the past month, outpacing the Consumer Discretionary sector's loss of 0.49% and the S&P 500's gain of 5.68% in that time.
Investors will be hoping for strength from LULU as it approaches its next earnings release. On that day, LULU is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 18.97%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 27.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.50 per share and revenue of $6.26 billion. These totals would mark changes of +59.57% and +42.16%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LULU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 remained stagnant. LULU is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 62.14 right now. For comparison, its industry has an average Forward P/E of 16.79, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 3.11. 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 0.82 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
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