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Lululemon (LULU) Falls More Steeply Than Broader Market: What Investors Need to Know
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The most recent trading session ended with Lululemon (LULU - Free Report) standing at $256, reflecting a -1.17% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.
The athletic apparel maker's stock has dropped by 14.33% in the past month, falling short of the Consumer Discretionary sector's loss of 0.46% and the S&P 500's gain of 0.1%.
The upcoming earnings release of Lululemon will be of great interest to investors. It is anticipated that the company will report an EPS of $2.95, marking a 10.07% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 9.24% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.22 per share and a revenue of $10.68 billion, indicating changes of +11.35% and +11%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. Lululemon is currently a Zacks Rank #3 (Hold).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 18.22. This expresses a premium compared to the average Forward P/E of 14.23 of its industry.
We can also see that LULU currently has a PEG ratio of 1.3. 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. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.52.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 30% of all industries, numbering over 250.
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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Lululemon (LULU) Falls More Steeply Than Broader Market: What Investors Need to Know
The most recent trading session ended with Lululemon (LULU - Free Report) standing at $256, reflecting a -1.17% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.
The athletic apparel maker's stock has dropped by 14.33% in the past month, falling short of the Consumer Discretionary sector's loss of 0.46% and the S&P 500's gain of 0.1%.
The upcoming earnings release of Lululemon will be of great interest to investors. It is anticipated that the company will report an EPS of $2.95, marking a 10.07% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 9.24% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.22 per share and a revenue of $10.68 billion, indicating changes of +11.35% and +11%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. Lululemon is currently a Zacks Rank #3 (Hold).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 18.22. This expresses a premium compared to the average Forward P/E of 14.23 of its industry.
We can also see that LULU currently has a PEG ratio of 1.3. 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. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.52.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 30% of all industries, numbering over 250.
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.