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Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
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Lululemon (LULU - Free Report) closed at $375.71 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.74%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.16% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.26% and the S&P 500's gain of 0.85% 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 $1.93 per share. This would mark year-over-year growth of 30.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.48 per share and revenue of $9.38 billion. These totals would mark changes of +14% and +15.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lululemon. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 32.78. Its industry sports an average Forward P/E of 10.11, so we one might conclude that Lululemon is trading at a premium comparatively.
It is also worth noting that LULU currently has a PEG ratio of 1.64. 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 industry currently had an average PEG ratio of 1.15 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 18% 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.
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
Lululemon (LULU - Free Report) closed at $375.71 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.74%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.16% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.26% and the S&P 500's gain of 0.85% 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 $1.93 per share. This would mark year-over-year growth of 30.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.48 per share and revenue of $9.38 billion. These totals would mark changes of +14% and +15.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lululemon. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 32.78. Its industry sports an average Forward P/E of 10.11, so we one might conclude that Lululemon is trading at a premium comparatively.
It is also worth noting that LULU currently has a PEG ratio of 1.64. 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 industry currently had an average PEG ratio of 1.15 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 18% 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.