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Lululemon (LULU) Declines More Than Market: Some Information for Investors
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In the latest trading session, Lululemon (LULU - Free Report) closed at $141.66, marking a -13.33% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.89%.
Shares of the athletic apparel maker have appreciated by 2.98% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 5.46%, and the S&P 500's gain of 9.71%.
The upcoming earnings release of Lululemon will be of great interest to investors. In that report, analysts expect Lululemon to post earnings of $1.69 per share. This would mark a year-over-year decline of 35%. At the same time, our most recent consensus estimate is projecting a revenue of $2.43 billion, reflecting a 2.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.34 per share and a revenue of $11.5 billion, demonstrating changes of -6.94% and +3.54%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0% decrease. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 13.24. This valuation marks a discount compared to its industry average Forward P/E of 18.57.
Meanwhile, LULU's PEG ratio is currently 5.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.97.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lululemon (LULU) Declines More Than Market: Some Information for Investors
In the latest trading session, Lululemon (LULU - Free Report) closed at $141.66, marking a -13.33% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.89%.
Shares of the athletic apparel maker have appreciated by 2.98% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 5.46%, and the S&P 500's gain of 9.71%.
The upcoming earnings release of Lululemon will be of great interest to investors. In that report, analysts expect Lululemon to post earnings of $1.69 per share. This would mark a year-over-year decline of 35%. At the same time, our most recent consensus estimate is projecting a revenue of $2.43 billion, reflecting a 2.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.34 per share and a revenue of $11.5 billion, demonstrating changes of -6.94% and +3.54%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0% decrease. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 13.24. This valuation marks a discount compared to its industry average Forward P/E of 18.57.
Meanwhile, LULU's PEG ratio is currently 5.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.97.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.