Lululemon (LULU) closed the most recent trading day at $410.29, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq lost 1.2%.
The athletic apparel maker's stock has climbed by 9.52% in the past month, exceeding the Consumer Discretionary sector's gain of 3.51% and the S&P 500's gain of 2.71%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is predicted to post an EPS of $5.83, indicating a 10.21% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.57 billion, indicating a 11.49% growth compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in 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.
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 past month, there's been a 1.35% rise in the Zacks Consensus EPS estimate. Lululemon currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 28.85 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.64.
One should further note that LULU currently holds a PEG ratio of 2.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.86.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.