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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
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Lululemon (LULU - Free Report) closed at $325.23 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 3.77%.
Prior to today's trading, shares of the athletic apparel maker had lost 1.22% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.51% and the S&P 500's gain of 3.54% in that time.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. On that day, Lululemon is projected to report earnings of $4.24 per share, which would represent year-over-year growth of 25.82%. Meanwhile, our latest consensus estimate is calling for revenue of $2.69 billion, up 26.27% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Lululemon. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Lululemon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 28.18. This represents a premium compared to its industry's average Forward P/E of 13.21.
It is also worth noting that LULU currently has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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) Outpaces Stock Market Gains: What You Should Know
Lululemon (LULU - Free Report) closed at $325.23 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 3.77%.
Prior to today's trading, shares of the athletic apparel maker had lost 1.22% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.51% and the S&P 500's gain of 3.54% in that time.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. On that day, Lululemon is projected to report earnings of $4.24 per share, which would represent year-over-year growth of 25.82%. Meanwhile, our latest consensus estimate is calling for revenue of $2.69 billion, up 26.27% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Lululemon. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Lululemon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 28.18. This represents a premium compared to its industry's average Forward P/E of 13.21.
It is also worth noting that LULU currently has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.