Lululemon (LULU - Free Report) closed the most recent trading day at $121.61, moving +0.17% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 0.77%.
Coming into today, shares of the athletic apparel maker had lost 6.23% in the past month. In that same time, the Consumer Discretionary sector lost 10.24%, while the S&P 500 lost 9.35%.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. This is expected to be March 26, 2019. In that report, analysts expect LULU to post earnings of $1.69 per share. This would mark year-over-year growth of 27.07%. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 21.4% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $3.25 billion. These results would represent year-over-year changes of +42.47% and +22.59%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 2.98% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 32.87 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.34.
It is also worth noting that LULU currently has a PEG ratio of 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.37 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 72, which puts it in the top 28% 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.