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Lululemon (LULU) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest market close, Lululemon (LULU - Free Report) reached $462.40, with a +0.1% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Shares of the athletic apparel maker have depreciated by 6.87% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.41% and the S&P 500's gain of 2.93%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company's upcoming EPS is projected at $4.99, signifying a 13.41% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.19 billion, indicating a 14.99% upward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.25% higher. Lululemon is currently a Zacks Rank #2 (Buy).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 32.25. This expresses a premium compared to the average Forward P/E of 11.82 of its industry.
Investors should also note that LULU has a PEG ratio of 1.61 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest market close, Lululemon (LULU - Free Report) reached $462.40, with a +0.1% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Shares of the athletic apparel maker have depreciated by 6.87% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.41% and the S&P 500's gain of 2.93%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company's upcoming EPS is projected at $4.99, signifying a 13.41% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.19 billion, indicating a 14.99% upward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.25% higher. Lululemon is currently a Zacks Rank #2 (Buy).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 32.25. This expresses a premium compared to the average Forward P/E of 11.82 of its industry.
Investors should also note that LULU has a PEG ratio of 1.61 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.