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Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Lululemon (LULU - Free Report) closed at $363.37, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Coming into today, shares of the athletic apparel maker had gained 22.98% in the past month. In that same time, the Consumer Discretionary sector gained 0.08%, while the S&P 500 gained 3.13%.
Lululemon will be looking to display strength as it nears its next earnings release. On that day, Lululemon is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 27.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.93 billion, up 19.35% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $11.43 per share and revenue of $9.37 billion. These results would represent year-over-year changes of +13.51% and +15.55%, respectively.
Investors should also note any recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 31.88. This represents a premium compared to its industry's average Forward P/E of 10.89.
Also, we should mention that LULU has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.23 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 153, which puts it in the bottom 40% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Lululemon (LULU - Free Report) closed at $363.37, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Coming into today, shares of the athletic apparel maker had gained 22.98% in the past month. In that same time, the Consumer Discretionary sector gained 0.08%, while the S&P 500 gained 3.13%.
Lululemon will be looking to display strength as it nears its next earnings release. On that day, Lululemon is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 27.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.93 billion, up 19.35% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $11.43 per share and revenue of $9.37 billion. These results would represent year-over-year changes of +13.51% and +15.55%, respectively.
Investors should also note any recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Lululemon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 31.88. This represents a premium compared to its industry's average Forward P/E of 10.89.
Also, we should mention that LULU has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.23 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 153, which puts it in the bottom 40% 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.