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Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Lululemon (LULU - Free Report) closed at $148.43, marking a -0.95% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.68%.
Prior to today's trading, shares of the athletic apparel maker had gained 22.17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 10.66% and the S&P 500's gain of 9.43% in that time.
Investors will be hoping for strength from LULU as it approaches its next earnings release, which is expected to be March 26, 2019. The company is expected to report EPS of $1.73, up 30.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 23.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $3.26 billion, which would represent changes of +45.56% and +23.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LULU. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.05% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LULU currently has a Forward P/E ratio of 39.76. For comparison, its industry has an average Forward P/E of 16.53, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.06. 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 industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Sinks As Market Gains: What You Should Know
In the latest trading session, Lululemon (LULU - Free Report) closed at $148.43, marking a -0.95% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.68%.
Prior to today's trading, shares of the athletic apparel maker had gained 22.17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 10.66% and the S&P 500's gain of 9.43% in that time.
Investors will be hoping for strength from LULU as it approaches its next earnings release, which is expected to be March 26, 2019. The company is expected to report EPS of $1.73, up 30.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 23.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $3.26 billion, which would represent changes of +45.56% and +23.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LULU. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.05% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LULU currently has a Forward P/E ratio of 39.76. For comparison, its industry has an average Forward P/E of 16.53, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.06. 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 industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.