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Why Lululemon (LULU) Outpaced the Stock Market Today
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Lululemon (LULU - Free Report) closed the most recent trading day at $461.94, moving +1.79% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.25%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.
The the stock of athletic apparel maker has fallen by 8.88% in the past month, lagging the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 1.58%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company's upcoming EPS is projected at $2.27, signifying a 48.41% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.19 billion, reflecting a 14.94% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. As of now, Lululemon holds a Zacks Rank of #2 (Buy).
In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 36.38. This valuation marks a premium compared to its industry's average Forward P/E of 11.79.
One should further note that LULU currently holds a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.58 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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Why Lululemon (LULU) Outpaced the Stock Market Today
Lululemon (LULU - Free Report) closed the most recent trading day at $461.94, moving +1.79% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.25%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.
The the stock of athletic apparel maker has fallen by 8.88% in the past month, lagging the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 1.58%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company's upcoming EPS is projected at $2.27, signifying a 48.41% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.19 billion, reflecting a 14.94% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. As of now, Lululemon holds a Zacks Rank of #2 (Buy).
In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 36.38. This valuation marks a premium compared to its industry's average Forward P/E of 11.79.
One should further note that LULU currently holds a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.58 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.