Back to top

Image: Bigstock

Lululemon (LULU) Stock Moves -0.48%: What You Should Know

Read MoreHide Full Article

Lululemon (LULU - Free Report) closed the most recent trading day at $271.22, moving -0.48% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the athletic apparel maker had lost 29.29% over the past month. This has lagged the Consumer Discretionary sector's loss of 15.68% and the S&P 500's loss of 10.53% in that time.

Lululemon will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lululemon to post earnings of $1.43 per share. This would mark year-over-year growth of 23.28%. Meanwhile, our latest consensus estimate is calling for revenue of $1.55 billion, up 26.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.33 per share and revenue of $7.59 billion, which would represent changes of +19.77% and +21.33%, respectively, from the prior year.

Any recent changes to analyst estimates for Lululemon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Lululemon is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Lululemon currently has a Forward P/E ratio of 29.2. For comparison, its industry has an average Forward P/E of 10.02, which means Lululemon is trading at a premium to the group.

It is also worth noting that LULU currently has a PEG ratio of 1.46. 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 1.17 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

lululemon athletica inc. (LULU) - free report >>

Published in