In the latest trading session, Lululemon (LULU - Free Report) closed at $243.77, marking a +0.05% move from the previous day. This change lagged the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.26%.
Coming into today, shares of the athletic apparel maker had gained 5.18% in the past month. In that same time, the Consumer Discretionary sector lost 2.68%, while the S&P 500 gained 1.18%.
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 $2.25 per share. This would mark year-over-year growth of 21.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.38 billion, up 17.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $3.96 billion, which would represent changes of +29.17% and +20.34%, respectively, from the prior 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.09% higher. LULU is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, LULU currently has a Forward P/E ratio of 49.12. Its industry sports an average Forward P/E of 14.77, so we one might conclude that LULU is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 2.61. 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. The Textile - Apparel was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.