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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
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Lululemon (LULU - Free Report) closed at $310.23 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Prior to today's trading, shares of the athletic apparel maker had lost 0.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 3.23% and the S&P 500's loss of 1% in that time.
Lululemon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.25, up 26.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.69 billion, up 26.43% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 27.16. Its industry sports an average Forward P/E of 11.61, so we one might conclude that Lululemon is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 1.36. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
Lululemon (LULU - Free Report) closed at $310.23 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Prior to today's trading, shares of the athletic apparel maker had lost 0.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 3.23% and the S&P 500's loss of 1% in that time.
Lululemon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.25, up 26.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.69 billion, up 26.43% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 27.16. Its industry sports an average Forward P/E of 11.61, so we one might conclude that Lululemon is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 1.36. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.