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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
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Lululemon (LULU - Free Report) closed at $331.70 in the latest trading session, marking a +0.41% move from the prior day. This change outpaced the S&P 500's 0.19% gain on the day. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the athletic apparel maker had gained 16.06% over the past month. This has outpaced the Consumer Discretionary sector's gain of 12.35% and the S&P 500's gain of 11.37% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. In that report, analysts expect Lululemon to post earnings of $1.86 per share. This would mark year-over-year growth of 12.73%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 22.06% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.44 per share and revenue of $7.69 billion. These results would represent year-over-year changes of +21.18% and +22.94%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.2% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 35.01 right now. Its industry sports an average Forward P/E of 10.67, so we one might conclude that Lululemon is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 1.75. 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 was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.
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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
Lululemon (LULU - Free Report) closed at $331.70 in the latest trading session, marking a +0.41% move from the prior day. This change outpaced the S&P 500's 0.19% gain on the day. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the athletic apparel maker had gained 16.06% over the past month. This has outpaced the Consumer Discretionary sector's gain of 12.35% and the S&P 500's gain of 11.37% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. In that report, analysts expect Lululemon to post earnings of $1.86 per share. This would mark year-over-year growth of 12.73%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 22.06% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.44 per share and revenue of $7.69 billion. These results would represent year-over-year changes of +21.18% and +22.94%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.2% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 35.01 right now. Its industry sports an average Forward P/E of 10.67, so we one might conclude that Lululemon is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 1.75. 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 was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.