Lululemon (LULU - Free Report) closed at $140.51 in the latest trading session, marking a -0.12% move from the prior day. This change was narrower than the S&P 500's 2.06% loss on the day. Meanwhile, the Dow lost 2.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Prior to today's trading, shares of the athletic apparel maker had lost 8.06% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.7% and the S&P 500's loss of 3.01% in that time.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. This 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. Our most recent consensus estimate is calling for quarterly revenue of $733.17 million, up 18.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $3.23 billion, which would represent changes of +38.22% and +21.76%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LULU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.32% higher. LULU is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 39.33 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.46.
Meanwhile, LULU's PEG ratio is currently 2.04. 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 1.68 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.