Lululemon (LULU) Stock Slides as Market Rises: Facts to Know Before You Trade
Lululemon (LULU) closed the most recent trading day at $467.84, moving -0.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.17%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.37%.
The athletic apparel maker's shares have seen a decrease of 2.85% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.2% and the S&P 500's gain of 3.8%.
The upcoming earnings release of Lululemon will be of great interest to investors. The company is predicted to post an EPS of $4.99, indicating a 13.41% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.19 billion, reflecting a 15.04% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% increase. Lululemon is currently a Zacks Rank #3 (Hold).
Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 32.66. This denotes a premium relative to the industry's average Forward P/E of 13.52.
It is also worth noting that LULU currently has a PEG ratio of 1.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Textile - Apparel industry stood at 1.63 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
