In the latest trading session, Lululemon (LULU - Free Report) closed at $142.02, marking a -1.49% move from the previous day. This change lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Heading into today, shares of the athletic apparel maker had lost 8.2% over the past month, lagging the Consumer Discretionary sector's loss of 5.5% and the S&P 500's loss of 6.28% in that time.
LULU will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. In that report, analysts expect LULU to post earnings of $0.68 per share. This would mark year-over-year growth of 21.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 +21.8%, respectively, from the prior year.
Any recent changes to analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. LULU is currently a Zacks Rank #1 (Strong Buy).
Investors should also note LULU's current valuation metrics, including its Forward P/E ratio of 40.3. For comparison, its industry has an average Forward P/E of 19.77, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.09. 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 industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.