Lululemon (LULU - Free Report) closed at $145.27 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 1.47% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 2.02%.
Heading into today, shares of the athletic apparel maker had lost 3.47% over the past month, lagging the Consumer Discretionary sector's gain of 1.52% and the S&P 500's gain of 1.5% in that time.
LULU will be looking to display strength as it nears its next earnings release. In that report, analysts expect LULU to post earnings of $1.74 per share. This would mark year-over-year growth of 30.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 23.7% from the year-ago period.
Investors should also note any recent changes to analyst estimates for LULU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.02% higher. LULU is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LULU currently has a Forward P/E ratio of 32.42. This represents a premium compared to its industry's average Forward P/E of 15.83.
Also, we should mention that LULU has a PEG ratio of 1.68. 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 1.49 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.