Lululemon (LULU - Free Report) closed at $169.37 in the latest trading session, marking a -1.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.59%.
Coming into today, shares of the athletic apparel maker had gained 16.03% in the past month. In that same time, the Consumer Discretionary sector gained 1.83%, while the S&P 500 gained 3.24%.
LULU will be looking to display strength as it nears its next earnings release. On that day, LULU is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $754.10 million, up 16.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $3.75 billion. These totals would mark changes of +20.31% and +14.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LULU. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 5.13% higher. LULU is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, LULU currently has a Forward P/E ratio of 37.1. Its industry sports an average Forward P/E of 15.87, so we one might conclude that LULU is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 2.06. 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. LULU's industry had an average PEG ratio of 1.45 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.