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Lululemon (LULU) Gains As Market Dips: What You Should Know
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Lululemon (LULU - Free Report) closed the most recent trading day at $329.04, moving +0.17% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the athletic apparel maker had gained 17.5% over the past month. This has outpaced the Consumer Discretionary sector's gain of 4.1% and the S&P 500's gain of 4.98% in that time.
Lululemon will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lululemon to post earnings of $1.95 per share. This would mark year-over-year growth of 20.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 24.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.89 per share and revenue of $7.93 billion, which would represent changes of +26.96% and +26.74%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.2% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 33.22. This valuation marks a premium compared to its industry's average Forward P/E of 10.47.
It is also worth noting that LULU currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lululemon (LULU) Gains As Market Dips: What You Should Know
Lululemon (LULU - Free Report) closed the most recent trading day at $329.04, moving +0.17% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the athletic apparel maker had gained 17.5% over the past month. This has outpaced the Consumer Discretionary sector's gain of 4.1% and the S&P 500's gain of 4.98% in that time.
Lululemon will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lululemon to post earnings of $1.95 per share. This would mark year-over-year growth of 20.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 24.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.89 per share and revenue of $7.93 billion, which would represent changes of +26.96% and +26.74%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.2% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 33.22. This valuation marks a premium compared to its industry's average Forward P/E of 10.47.
It is also worth noting that LULU currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.