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Lululemon (LULU) Surpasses Market Returns: Some Facts Worth Knowing
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Lululemon (LULU - Free Report) closed the most recent trading day at $181.94, moving +2.5% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 0.82%.
Shares of the athletic apparel maker witnessed a loss of 1.37% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.51%, and underperforming the S&P 500's loss of 0.31%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company is expected to report EPS of $2.22, down 22.65% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.49 billion, reflecting a 3.72% rise from the equivalent quarter last year.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $12.9 per share and revenue of $10.98 billion. These results would represent year-over-year changes of -11.89% and +3.68%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Right now, Lululemon possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 13.76. This indicates a discount in contrast to its industry's Forward P/E of 16.47.
We can additionally observe that LULU currently boasts a PEG ratio of 11.1. 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 2.59 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Lululemon (LULU) Surpasses Market Returns: Some Facts Worth Knowing
Lululemon (LULU - Free Report) closed the most recent trading day at $181.94, moving +2.5% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 0.82%.
Shares of the athletic apparel maker witnessed a loss of 1.37% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.51%, and underperforming the S&P 500's loss of 0.31%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company is expected to report EPS of $2.22, down 22.65% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.49 billion, reflecting a 3.72% rise from the equivalent quarter last year.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $12.9 per share and revenue of $10.98 billion. These results would represent year-over-year changes of -11.89% and +3.68%, respectively.
It is also important to note the recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Right now, Lululemon possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 13.76. This indicates a discount in contrast to its industry's Forward P/E of 16.47.
We can additionally observe that LULU currently boasts a PEG ratio of 11.1. 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 2.59 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.