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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
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Lululemon (LULU - Free Report) closed at $360.84 in the latest trading session, marking a +1.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the athletic apparel maker had lost 3.49% in the past month. In that same time, the Consumer Discretionary sector lost 16.66%, while the S&P 500 lost 10.81%.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. The company is expected to report EPS of $1.43, up 23.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 25.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $7.59 billion, which would represent changes of +19.64% and +21.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.26% higher. Lululemon is currently a Zacks Rank #3 (Hold).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 38.06. For comparison, its industry has an average Forward P/E of 10.92, which means Lululemon is trading at a premium to the group.
We can also see that LULU currently has a PEG ratio of 1.9. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
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) Outpaces Stock Market Gains: What You Should Know
Lululemon (LULU - Free Report) closed at $360.84 in the latest trading session, marking a +1.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the athletic apparel maker had lost 3.49% in the past month. In that same time, the Consumer Discretionary sector lost 16.66%, while the S&P 500 lost 10.81%.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. The company is expected to report EPS of $1.43, up 23.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 25.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.32 per share and revenue of $7.59 billion, which would represent changes of +19.64% and +21.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.26% higher. Lululemon is currently a Zacks Rank #3 (Hold).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 38.06. For comparison, its industry has an average Forward P/E of 10.92, which means Lululemon is trading at a premium to the group.
We can also see that LULU currently has a PEG ratio of 1.9. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.