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Lululemon (LULU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Lululemon (LULU - Free Report) closed at $125.61 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.32% loss on the day. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 0.6%.
Prior to today's trading, shares of the athletic apparel maker had gained 6.23% outpaced the Consumer Discretionary sector's gain of 3.7% and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.79, marking a 42.26% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.47 billion, indicating a 2.26% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.93 per share and a revenue of $11.07 billion, indicating changes of -17.57% and -0.27%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.37% lower. Lululemon currently has a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 11.7. This expresses a discount compared to the average Forward P/E of 15.14 of its industry.
We can additionally observe that LULU currently boasts a PEG ratio of 4.19. 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 2.03.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Lululemon (LULU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Lululemon (LULU - Free Report) closed at $125.61 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.32% loss on the day. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 0.6%.
Prior to today's trading, shares of the athletic apparel maker had gained 6.23% outpaced the Consumer Discretionary sector's gain of 3.7% and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.79, marking a 42.26% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.47 billion, indicating a 2.26% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.93 per share and a revenue of $11.07 billion, indicating changes of -17.57% and -0.27%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.37% lower. Lululemon currently has a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 11.7. This expresses a discount compared to the average Forward P/E of 15.14 of its industry.
We can additionally observe that LULU currently boasts a PEG ratio of 4.19. 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 2.03.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.