Lululemon (LULU) closed the latest trading day at $345.29, indicating a -0.72% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 1.22% for the day. Meanwhile, the Dow lost 1.55%, and the Nasdaq, a tech-heavy index, lost 0.35%.

The athletic apparel maker's shares have seen a decrease of 15.23% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.86% and the S&P 500's loss of 2.31%.

The upcoming earnings release of Lululemon will be of great interest to investors. The company is expected to report EPS of $5.83, up 10.21% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.57 billion, up 11.5% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Currently, Lululemon is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Lululemon currently has a Forward P/E ratio of 22.62. For comparison, its industry has an average Forward P/E of 14.7, which means Lululemon is trading at a premium to the group.

We can additionally observe that LULU currently boasts a PEG ratio of 2.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 14% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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lululemon athletica inc. (LULU) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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