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Lululemon (LULU) Gains As Market Dips: What You Should Know
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In the latest trading session, Lululemon (LULU - Free Report) closed at $349.38, marking a +0.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the athletic apparel maker had gained 16.48% in the past month. In that same time, the Consumer Discretionary sector gained 8.06%, while the S&P 500 gained 6.77%.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. The company is expected to report EPS of $1.95, up 20.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 24.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.89 per share and revenue of $7.93 billion, which would represent changes of +26.96% and +26.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Lululemon is currently a Zacks Rank #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 35.18. Its industry sports an average Forward P/E of 10.85, so we one might conclude that Lululemon is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 1.76 right now. 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 was holding an average PEG ratio of 1.62 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 128, which puts it in the top 50% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lululemon (LULU) Gains As Market Dips: What You Should Know
In the latest trading session, Lululemon (LULU - Free Report) closed at $349.38, marking a +0.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the athletic apparel maker had gained 16.48% in the past month. In that same time, the Consumer Discretionary sector gained 8.06%, while the S&P 500 gained 6.77%.
Investors will be hoping for strength from Lululemon as it approaches its next earnings release. The company is expected to report EPS of $1.95, up 20.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 24.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.89 per share and revenue of $7.93 billion, which would represent changes of +26.96% and +26.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Lululemon is currently a Zacks Rank #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 35.18. Its industry sports an average Forward P/E of 10.85, so we one might conclude that Lululemon is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 1.76 right now. 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 was holding an average PEG ratio of 1.62 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 128, which puts it in the top 50% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.