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Lululemon (LULU) Registers a Bigger Fall Than the Market: Important Facts to Note

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Lululemon (LULU - Free Report) ended the recent trading session at $166.43, demonstrating a -1.96% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 0.01%.

The athletic apparel maker's shares have seen a decrease of 3.37% over the last month, not keeping up with the Consumer Discretionary sector's loss of 1.03% and the S&P 500's loss of 2.26%.

Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 17, 2026. The company is forecasted to report an EPS of $4.74, showcasing a 22.8% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.6 billion, reflecting a 0.31% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $13.06 per share and a revenue of $11.08 billion, demonstrating changes of -10.79% and +4.69%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been a 0.37% rise in the Zacks Consensus EPS estimate. Lululemon is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 13.25. Its industry sports an average Forward P/E of 17, so one might conclude that Lululemon is trading at a discount comparatively.

One should further note that LULU currently holds a PEG ratio of 10.69. 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. The Textile - Apparel industry currently had an average PEG ratio of 2.08 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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