Why Lululemon (LULU) Dipped More Than Broader Market Today
The latest trading session saw Lululemon (LULU) ending at $457.76, denoting a -0.57% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
The the stock of athletic apparel maker has fallen by 2.09% in the past month, lagging the Consumer Discretionary sector's gain of 0.38% and the S&P 500's gain of 2.7%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company plans to announce its earnings on March 21, 2024. It is anticipated that the company will report an EPS of $4.99, marking a 13.41% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.19 billion, up 15.04% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 32.13. This indicates a premium in contrast to its industry's Forward P/E of 13.77.
Meanwhile, LULU's PEG ratio is currently 1.61. 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 1.63 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
