In the latest trading session, Lululemon (LULU - Free Report) closed at $142.27, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.53%.
Heading into today, shares of the athletic apparel maker had gained 1.81% over the past month, outpacing the Consumer Discretionary sector's loss of 1.72% and the S&P 500's loss of 2.35% 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, our latest consensus estimate is calling for revenue of $733.17 million, up 18.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.58 per share and revenue of $3.23 billion. These totals would mark changes of +38.22% and +21.8%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LULU. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. LULU is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, LULU currently has a Forward P/E ratio of 40.03. For comparison, its industry has an average Forward P/E of 18.83, which means LULU is trading at a premium to the group.
It is also worth noting that LULU currently has a PEG ratio of 2.08. 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 1.54 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 35, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.