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Lululemon (LULU) Stock Moves 0.41%: What You Should Know

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Lululemon (LULU - Free Report) closed at $239.70 in the latest trading session, marking a +0.41% move from the prior day. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq increased by 0.21%.

The athletic apparel maker's shares have seen a decrease of 17.98% over the last month, not keeping up with the Consumer Discretionary sector's loss of 2.38% and the S&P 500's loss of 4.22%.

Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.96, marking a 10.45% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.43 billion, indicating a 10.17% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $14.27 per share and a revenue of $10.75 billion, demonstrating changes of +11.75% and +11.77%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 16.73 right now. Its industry sports an average Forward P/E of 14.44, so one might conclude that Lululemon is trading at a premium comparatively.

We can additionally observe that LULU currently boasts a PEG ratio of 1.26. 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 Textile - Apparel was holding an average PEG ratio of 1.69 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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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