Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
Lululemon (LULU) closed at $395.53 in the latest trading session, marking a -1.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%.
Coming into today, shares of the athletic apparel maker had lost 1.8% in the past month. In that same time, the Consumer Discretionary sector gained 2.59%, while the S&P 500 gained 3.02%.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. This is expected to be September 8, 2021. In that report, analysts expect LULU to post earnings of $1.20 per share. This would mark year-over-year growth of 62.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 47.88% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $7.10 per share and revenue of $5.96 billion. These results would represent year-over-year changes of +51.06% and +35.46%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 0.55% higher. LULU is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note LULU's current valuation metrics, including its Forward P/E ratio of 56.35. Its industry sports an average Forward P/E of 17.66, so we one might conclude that LULU is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 3.07. 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 1.1 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
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