In the latest trading session, Lululemon (LULU - Free Report) closed at $170.38, marking a -1.81% move from the previous day. This change lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.53%.
Coming into today, shares of the athletic apparel maker had lost 0.94% in the past month. In that same time, the Consumer Discretionary sector lost 4.98%, while the S&P 500 lost 3.77%.
Investors will be hoping for strength from LULU as it approaches its next earnings release, which is expected to be June 12, 2019. The company is expected to report EPS of $0.71, up 29.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $757.10 million, up 16.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.60 per share and revenue of $3.76 billion, which would represent changes of +19.79% and +14.35%, respectively, from the prior year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. LULU is currently a Zacks Rank #2 (Buy).
Digging into valuation, LULU currently has a Forward P/E ratio of 37.73. Its industry sports an average Forward P/E of 15.57, 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 2.05. 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 1.44 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 191, putting it in the bottom 26% 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.