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Lululemon (LULU) Flat As Market Gains: What You Should Know

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The latest trading session saw Lululemon (LULU - Free Report) ending at $407.95, denoting no adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.

The the stock of athletic apparel maker has risen by 11.09% in the past month, leading the Consumer Discretionary sector's gain of 6.27% and the S&P 500's gain of 3.08%.

The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. On that day, Lululemon is projected to report earnings of $2.27 per share, which would represent year-over-year growth of 13.5%. At the same time, our most recent consensus estimate is projecting a revenue of $2.19 billion, reflecting a 17.95% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.13 per share and a revenue of $9.58 billion, representing changes of +20.46% and +18.11%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Lululemon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lululemon presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Lululemon is holding a Forward P/E ratio of 33.64. This signifies a premium in comparison to the average Forward P/E of 14 for its industry.

Investors should also note that LULU has a PEG ratio of 1.81 right now. 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 average PEG ratio for the Textile - Apparel industry stood at 1.49 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 41% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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