In the latest trading session, Lululemon (LULU - Free Report) closed at $149.79, marking a +0.79% move from the previous day. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the athletic apparel maker had gained 12.92% over the past month, outpacing the Consumer Discretionary sector's gain of 4.92% and the S&P 500's gain of 5.36% in that time.
Investors will be hoping for strength from LULU as it approaches its next earnings release. The company is expected to report EPS of $1.74, up 30.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 23.7% from the year-ago period.
Investors might also notice 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 1.3% higher. LULU currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 33.78 right now. Its industry sports an average Forward P/E of 15.22, so we one might conclude that LULU is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 1.75. 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 1.37 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 26, putting it in the top 11% 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.