Lululemon (LULU - Free Report) closed at $243.90 in the latest trading session, marking a -1.65% move from the prior day. This change lagged the S&P 500's 1.13% gain on the day. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 0.43%.
Heading into today, shares of the athletic apparel maker had gained 6.11% over the past month, outpacing the Consumer Discretionary sector's loss of 0.11% and the S&P 500's gain of 2.1% in that time.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. On that day, LULU is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 21.62%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 17.86% from the year-ago period.
It is also important to note the recent changes to analyst estimates for LULU. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 1.4% higher within the past month. LULU is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 43.14 right now. For comparison, its industry has an average Forward P/E of 14.77, which means LULU is trading at a premium to the group.
We can also see that LULU currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU's industry had an average PEG ratio of 1.7 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.