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Why Lululemon (LULU) Dipped More Than Broader Market Today
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Lululemon (LULU - Free Report) ended the recent trading session at $97.09, demonstrating a -2.02% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Coming into today, shares of the athletic apparel maker had lost 0.3% in the past month. In that same time, the Consumer Discretionary sector gained 0.95%, while the S&P 500 gained 2.44%.
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 $0.97, marking a 62.55% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.31 billion, down 10.02% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $10.5 billion. These results would represent year-over-year changes of -27.98% and -5.46%, respectively.
Investors should also note any recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. 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 10.37. This valuation marks a discount compared to its industry average Forward P/E of 16.44.
We can also see that LULU currently has a PEG ratio of 2.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.96.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why Lululemon (LULU) Dipped More Than Broader Market Today
Lululemon (LULU - Free Report) ended the recent trading session at $97.09, demonstrating a -2.02% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Coming into today, shares of the athletic apparel maker had lost 0.3% in the past month. In that same time, the Consumer Discretionary sector gained 0.95%, while the S&P 500 gained 2.44%.
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 $0.97, marking a 62.55% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.31 billion, down 10.02% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $10.5 billion. These results would represent year-over-year changes of -27.98% and -5.46%, respectively.
Investors should also note any recent changes to analyst estimates for Lululemon. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. 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 10.37. This valuation marks a discount compared to its industry average Forward P/E of 16.44.
We can also see that LULU currently has a PEG ratio of 2.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.96.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.