Lululemon (LULU) closed at $399.71 in the latest trading session, marking a +0.4% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.98%.
Coming into today, shares of the athletic apparel maker had gained 0.67% in the past month. In that same time, the Consumer Discretionary sector gained 3.46%, while the S&P 500 gained 2.07%.
The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. The company is forecasted to report an EPS of $5.83, showcasing a 10.21% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.57 billion, reflecting a 11.49% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.43% increase. At present, Lululemon boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 25.95. This valuation marks a premium compared to its industry's average Forward P/E of 15.72.
Meanwhile, LULU's PEG ratio is currently 2.43. 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. The Textile - Apparel industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
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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