In the latest trading session, Lululemon (LULU - Free Report) closed at $113.26, marking a -0.42% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.71%. At the same time, the Dow lost 2.91%, and the tech-heavy Nasdaq lost 2.21%.
Prior to today's trading, shares of the athletic apparel maker had lost 8.19% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 9.33% and the S&P 500's loss of 8.68% in that time.
LULU will be looking to display strength as it nears its next earnings release, which is expected to be March 26, 2019. The company is expected to report EPS of $1.69, up 27.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, up 21.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $3.25 billion. These totals would mark changes of +42.47% and +22.59%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LULU. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% higher. LULU is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, LULU currently has a Forward P/E ratio of 30.8. Its industry sports an average Forward P/E of 14.78, so we one might conclude that LULU is trading at a premium comparatively.
Also, we should mention that LULU has a PEG ratio of 1.6. 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 1.35 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.