In the latest trading session, Lululemon (LULU - Free Report) closed at $177.67, marking a -0.54% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.
Coming into today, shares of the athletic apparel maker had gained 4.24% in the past month. In that same time, the Consumer Discretionary sector gained 5.89%, while the S&P 500 gained 2.62%.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. In that report, analysts expect LULU to post earnings of $0.70 per share. This would mark year-over-year growth of 27.27%. Our most recent consensus estimate is calling for quarterly revenue of $753.06 million, up 15.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.65 per share and revenue of $3.76 billion. These totals would mark changes of +21.09% and +14.24%, respectively, from last 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. 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. 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 0.69% higher. LULU currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, LULU is holding a Forward P/E ratio of 38.41. This represents a premium compared to its industry's average Forward P/E of 16.78.
We can also see that LULU currently has a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.54 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 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.