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Lululemon (LULU) Advances While Market Declines: Some Information for Investors

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Lululemon (LULU - Free Report) ended the recent trading session at $298.54, demonstrating a +1.11% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.74%. On the other hand, the Dow registered a loss of 1.06%, and the technology-centric Nasdaq decreased by 0.58%.

The athletic apparel maker's shares have seen a decrease of 18.12% over the last month, not keeping up with the Consumer Discretionary sector's gain of 0.73% and the S&P 500's gain of 4.27%.

Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company's earnings report is set to go public on June 5, 2024. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 4.82% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.2 billion, indicating a 9.93% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.12 per share and revenue of $10.76 billion, which would represent changes of +10.57% and +11.9%, respectively, from the prior year.

Any recent changes to analyst estimates for Lululemon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% downward. Lululemon is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 20.92. For comparison, its industry has an average Forward P/E of 14.48, which means Lululemon is trading at a premium to the group.

Meanwhile, LULU's PEG ratio is currently 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

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.

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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