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Lululemon (LULU) Stock Drops Despite Market Gains: Important Facts to Note
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Lululemon (LULU - Free Report) ended the recent trading session at $458.98, demonstrating a -0.38% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 0.3%.
The athletic apparel maker's shares have seen a decrease of 1.64% over the last month, not keeping up with the Consumer Discretionary sector's gain of 4.01% and the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. It is anticipated that the company will report an EPS of $4.99, marking a 13.41% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.19 billion, indicating a 15.04% upward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Lululemon presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 32.13. This indicates a premium in contrast to its industry's Forward P/E of 13.56.
One should further note that LULU currently holds a PEG ratio of 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.61.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.
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Lululemon (LULU) Stock Drops Despite Market Gains: Important Facts to Note
Lululemon (LULU - Free Report) ended the recent trading session at $458.98, demonstrating a -0.38% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 0.3%.
The athletic apparel maker's shares have seen a decrease of 1.64% over the last month, not keeping up with the Consumer Discretionary sector's gain of 4.01% and the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. It is anticipated that the company will report an EPS of $4.99, marking a 13.41% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.19 billion, indicating a 15.04% upward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Lululemon presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 32.13. This indicates a premium in contrast to its industry's Forward P/E of 13.56.
One should further note that LULU currently holds a PEG ratio of 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.61.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.