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Lululemon (LULU) Dips More Than Broader Markets: What You Should Know
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Lululemon (LULU - Free Report) closed the most recent trading day at $296.52, moving -1.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the athletic apparel maker had lost 8.98% in the past month. In that same time, the Consumer Discretionary sector lost 10.41%, while the S&P 500 lost 6.24%.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. On that day, Lululemon is projected to report earnings of $3.27 per share, which would represent year-over-year growth of 26.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 23.43% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Lululemon. 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.
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.
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 0.03% higher within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 33.18. Its industry sports an average Forward P/E of 11.38, so we one might conclude that Lululemon is trading at a premium comparatively.
Also, we should mention that LULU has a PEG ratio of 1.66. 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 1.04 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 17, which puts it in the top 7% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lululemon (LULU) Dips More Than Broader Markets: What You Should Know
Lululemon (LULU - Free Report) closed the most recent trading day at $296.52, moving -1.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the athletic apparel maker had lost 8.98% in the past month. In that same time, the Consumer Discretionary sector lost 10.41%, while the S&P 500 lost 6.24%.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. On that day, Lululemon is projected to report earnings of $3.27 per share, which would represent year-over-year growth of 26.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 23.43% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Lululemon. 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.
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.
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 0.03% higher within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 33.18. Its industry sports an average Forward P/E of 11.38, so we one might conclude that Lululemon is trading at a premium comparatively.
Also, we should mention that LULU has a PEG ratio of 1.66. 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 1.04 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 17, which puts it in the top 7% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.