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Lululemon (LULU) Stock Moves -0.09%: What You Should Know

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Lululemon (LULU - Free Report) ended the recent trading session at $395.82, demonstrating a -0.09% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.

The athletic apparel maker's shares have seen an increase of 3.2% over the last month, surpassing the Consumer Discretionary sector's loss of 5.14% and the S&P 500's loss of 3.67%.

The upcoming earnings release of Lululemon will be of great interest to investors. The company's upcoming EPS is projected at $2.27, signifying a 13.5% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, up 17.95% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $9.58 billion. These totals would mark changes of +20.46% and +18.11%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lululemon. Such recent modifications usually signify the changing landscape 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 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Currently, Lululemon is carrying a Zacks Rank of #2 (Buy).

Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 32.67. Its industry sports an average Forward P/E of 13.65, so one might conclude that Lululemon is trading at a premium comparatively.

Meanwhile, LULU's PEG ratio is currently 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 1.28 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 29% of over 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.

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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