Lululemon (LULU) closed the most recent trading day at $176.35, moving -0.65% from the previous trading session. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the athletic apparel maker had gained 7.24% in the past month. In that same time, the Consumer Discretionary sector gained 7.57%, while the S&P 500 gained 3.95%.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. On that day, LULU is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 216.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $753.15 million, up 15.92% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.71 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +22.66% and +14.24%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.96% higher within the past month. LULU is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, LULU currently has a Forward P/E ratio of 37.7. Its industry sports an average Forward P/E of 16.3, so we one might conclude that LULU is trading at a premium comparatively.
Also, we should mention that LULU has a PEG ratio of 2.05. 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 1.54 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 164, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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