Lululemon (LULU) closed the most recent trading day at $402.90, moving +0.72% from the previous trading session. This change outpaced the S&P 500's 1.46% loss on the day. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw a decrease of 3.07%.

Coming into today, shares of the athletic apparel maker had gained 3.46% in the past month. In that same time, the Consumer Discretionary sector gained 0.19%, while the S&P 500 gained 1.08%.

The upcoming earnings release of Lululemon will be of great interest to investors. The company's upcoming EPS is projected at $5.82, signifying a 10.02% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.57 billion, up 11.49% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $14.36 per share and a revenue of $10.55 billion, demonstrating changes of +12.45% and +9.66%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lululemon. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.35% higher. Lululemon is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 27.86. This expresses a premium compared to the average Forward P/E of 16.18 of its industry.

Meanwhile, LULU's PEG ratio is currently 2.61. 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 average PEG ratio for the Textile - Apparel industry stood at 1.89 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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