In the latest trading session, Lululemon (LULU - Free Report) closed at $161.24, marking a +1.43% move from the previous day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq added 0.65%.
Coming into today, shares of the athletic apparel maker had gained 14.61% in the past month. In that same time, the Consumer Discretionary sector gained 1.66%, while the S&P 500 gained 0.86%.
LULU will be looking to display strength as it nears 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 $732.06 million, up 18.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $3.23 billion, which would represent changes of +37.07% and +21.77%, respectively, from the prior year.
Any recent changes to analyst estimates for LULU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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.
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. Within the past 30 days, our consensus EPS projection has moved 10.55% higher. LULU currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note LULU's current valuation metrics, including its Forward P/E ratio of 44.76. For comparison, its industry has an average Forward P/E of 18.75, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.39. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 39, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.