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Lululemon (LULU) Gains As Market Dips: What You Should Know
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Lululemon (LULU - Free Report) closed at $382.33 in the latest trading session, marking a +0.43% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.
Coming into today, shares of the athletic apparel maker had gained 0.32% in the past month. In that same time, the Consumer Discretionary sector gained 4.19%, while the S&P 500 gained 2.35%.
Lululemon will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lululemon to post earnings of $2.52 per share. This would mark year-over-year growth of 14.55%. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 15.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.92 per share and revenue of $9.5 billion. These totals would mark changes of +18.37% and +17.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 31.94. This represents a premium compared to its industry's average Forward P/E of 12.03.
Investors should also note that LULU has a PEG ratio of 1.6 right now. 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 industry currently had an average PEG ratio of 1.32 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 195, which puts it in the bottom 23% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lululemon (LULU) Gains As Market Dips: What You Should Know
Lululemon (LULU - Free Report) closed at $382.33 in the latest trading session, marking a +0.43% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.
Coming into today, shares of the athletic apparel maker had gained 0.32% in the past month. In that same time, the Consumer Discretionary sector gained 4.19%, while the S&P 500 gained 2.35%.
Lululemon will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lululemon to post earnings of $2.52 per share. This would mark year-over-year growth of 14.55%. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 15.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.92 per share and revenue of $9.5 billion. These totals would mark changes of +18.37% and +17.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Lululemon currently has a Zacks Rank of #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 31.94. This represents a premium compared to its industry's average Forward P/E of 12.03.
Investors should also note that LULU has a PEG ratio of 1.6 right now. 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 industry currently had an average PEG ratio of 1.32 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 195, which puts it in the bottom 23% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.