Lululemon (LULU - Free Report) closed at $132.16 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.
Prior to today's trading, shares of the athletic apparel maker had gained 9.49% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.77% and the S&P 500's loss of 1.4% 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 $1.70, up 27.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 21.51% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $3.25 billion, which would represent changes of +42.86% and +22.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for LULU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 35.58. For comparison, its industry has an average Forward P/E of 15.46, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 1.84. 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 1.39 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 49, which puts it in the top 20% 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.
To follow LULU in the coming trading sessions, be sure to utilize Zacks.com.