Lululemon (LULU - Free Report) closed at $170.61 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 1.14%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.58% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 2.92% and the S&P 500's loss of 3.2% in that time.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $753.42 million, up 15.96% 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 +14.35%, respectively, from last year.
Any recent changes to analyst estimates for LULU should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. LULU is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 36.01. For comparison, its industry has an average Forward P/E of 15.53, which means LULU is trading at a premium to the group.
It is also worth noting that LULU currently has a PEG ratio of 1.96. 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 1.45 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 81, putting it in the top 32% 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.