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Lululemon (LULU) closed the most recent trading day at $334.08, moving -1.33% from the previous trading session. This change lagged the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.57%.
Heading into today, shares of the athletic apparel maker had lost 7.81% over the past month, lagging the Consumer Discretionary sector's gain of 3.79% and the S&P 500's gain of 4.69% in that time.
LULU will be looking to display strength as it nears its next earnings release. On that day, LULU is projected to report earnings of $2.48 per share, which would represent year-over-year growth of 8.77%. Our most recent consensus estimate is calling for quarterly revenue of $1.66 billion, up 18.74% from the year-ago period.
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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.62% higher within the past month. LULU is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 50.91. This valuation marks a premium compared to its industry's average Forward P/E of 19.61.
Meanwhile, LULU's PEG ratio is currently 2.78. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.46 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 103, which puts it in the top 41% 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.
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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