Lululemon (LULU - Free Report) closed the most recent trading day at $222.16, moving +1.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.32%.
Heading into today, shares of the athletic apparel maker had gained 6.31% over the past month, outpacing the Consumer Discretionary sector's gain of 4.54% and the S&P 500's gain of 3.42% in that time.
LULU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.93, up 24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $896.50 million, up 19.91% 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 $3.87 billion. These totals would mark changes of +23.44% and +17.59%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. LULU is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note LULU's current valuation metrics, including its Forward P/E ratio of 45.72. Its industry sports an average Forward P/E of 14.51, so we one might conclude that LULU is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 2.52. 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. LULU's industry had an average PEG ratio of 2.09 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 81, which puts 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.