We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Lululemon (LULU - Free Report) closed the most recent trading day at $324.25, moving -0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Heading into today, shares of the athletic apparel maker had gained 9.17% over the past month, outpacing the Consumer Discretionary sector's gain of 1% and the S&P 500's loss of 0.41% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. 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, our latest consensus estimate is calling for revenue of $1.8 billion, up 24.44% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 32.93. This represents a premium compared to its industry's average Forward P/E of 10.63.
We can also see that LULU currently has a PEG ratio of 1.65. 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 1.49 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
Lululemon (LULU - Free Report) closed the most recent trading day at $324.25, moving -0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Heading into today, shares of the athletic apparel maker had gained 9.17% over the past month, outpacing the Consumer Discretionary sector's gain of 1% and the S&P 500's loss of 0.41% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. 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, our latest consensus estimate is calling for revenue of $1.8 billion, up 24.44% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 32.93. This represents a premium compared to its industry's average Forward P/E of 10.63.
We can also see that LULU currently has a PEG ratio of 1.65. 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 1.49 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.