In the latest trading session, Lululemon (LULU - Free Report) closed at $153.01, marking a -0.09% move from the previous day. The stock lagged the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.23%.
Coming into today, shares of the athletic apparel maker had gained 18.35% in the past month. In that same time, the Consumer Discretionary sector gained 0.16%, while the S&P 500 gained 2.16%.
Investors will be hoping for strength from LULU as it approaches its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of $0.68, up 21.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $731.91 million, up 18.24% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $3.52 per share and revenue of $3.23 billion. These results would represent year-over-year changes of +35.91% and +21.78%, respectively.
Investors should also note any recent changes to analyst estimates for LULU. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.74% higher. LULU is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 43.49. Its industry sports an average Forward P/E of 18.65, so we one might conclude that LULU is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 2.32 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.