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Lululemon (LULU) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest market close, Lululemon (LULU - Free Report) reached $396.70, with a -1.65% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.43%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 2.43%.
The athletic apparel maker's stock has climbed by 5.97% in the past month, exceeding the Consumer Discretionary sector's gain of 0.12% and the S&P 500's loss of 1.55%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.27, showcasing a 13.5% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.19 billion, showing a 17.95% escalation compared to the year-ago quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $12.13 per share and revenue of $9.58 billion. These results would represent year-over-year changes of +20.46% and +18.11%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Lululemon is carrying a Zacks Rank of #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 33.26. This indicates a premium in contrast to its industry's Forward P/E of 13.51.
It's also important to note that LULU currently trades at a PEG ratio of 1.79. 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. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.27.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lululemon (LULU) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Lululemon (LULU - Free Report) reached $396.70, with a -1.65% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.43%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 2.43%.
The athletic apparel maker's stock has climbed by 5.97% in the past month, exceeding the Consumer Discretionary sector's gain of 0.12% and the S&P 500's loss of 1.55%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.27, showcasing a 13.5% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.19 billion, showing a 17.95% escalation compared to the year-ago quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $12.13 per share and revenue of $9.58 billion. These results would represent year-over-year changes of +20.46% and +18.11%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Lululemon is carrying a Zacks Rank of #2 (Buy).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 33.26. This indicates a premium in contrast to its industry's Forward P/E of 13.51.
It's also important to note that LULU currently trades at a PEG ratio of 1.79. 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. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.27.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.