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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Lululemon (LULU - Free Report) closed at $349.19, marking a +1.24% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the athletic apparel maker had lost 9.43% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.37% and the S&P 500's loss of 4.63% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. On that day, Lululemon is projected to report earnings of $3.27 per share, which would represent year-over-year growth of 26.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 23.37% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 37.85. This valuation marks a premium compared to its industry's average Forward P/E of 13.03.
We can also see that LULU currently has a PEG ratio of 2.06. 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 0.91 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
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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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lululemon (LULU - Free Report) closed at $349.19, marking a +1.24% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the athletic apparel maker had lost 9.43% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.37% and the S&P 500's loss of 4.63% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. On that day, Lululemon is projected to report earnings of $3.27 per share, which would represent year-over-year growth of 26.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 23.37% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 37.85. This valuation marks a premium compared to its industry's average Forward P/E of 13.03.
We can also see that LULU currently has a PEG ratio of 2.06. 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 0.91 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.