In the latest trading session, Lululemon (LULU - Free Report) closed at $201.62, marking a +1.76% move from the previous day. This change outpaced the S&P 500's 1.09% gain on the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.34%.
Prior to today's trading, shares of the athletic apparel maker had lost 0.3% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.49% and the S&P 500's loss of 1.17% 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 $0.93 per share. This would mark year-over-year growth of 24%. Our most recent consensus estimate is calling for quarterly revenue of $894.65 million, up 19.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $3.85 billion. These totals would mark changes of +23.44% and +17.2%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. LULU currently has a Zacks Rank of #2 (Buy).
Investors should also note LULU's current valuation metrics, including its Forward P/E ratio of 41.82. For comparison, its industry has an average Forward P/E of 14.01, which means LULU is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 2.3. 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. The Textile - Apparel industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.