In the latest trading session, Lululemon (LULU - Free Report) closed at $179.59, marking a +0.43% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.48%, and the Nasdaq, a tech-heavy index, added 1.95%.
Heading into today, shares of the athletic apparel maker had lost 5.47% over the past month, outpacing the Consumer Discretionary sector's loss of 7.63% and lagging the S&P 500's loss of 4.19% in that time.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. The company is expected to report EPS of $0.88, up 23.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $840.55 million, up 16.18% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.70 per share and revenue of $3.79 billion. These results would represent year-over-year changes of +22.4% and +15.37%, respectively.
Investors might also notice recent changes to analyst estimates for LULU. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant within the past month. LULU is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 38.08 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.11.
We can also see that LULU currently has a PEG ratio of 2.07. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.3 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 49, putting it in the top 20% 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.