Lululemon (LULU - Free Report) closed the most recent trading day at $242.78, moving -1.16% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.05%. Meanwhile, the Dow lost 1.89%, and the Nasdaq, a tech-heavy index, lost 2.07%.
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 $0.30 per share, which would represent a year-over-year decline of 59.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $737.25 million, down 5.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $4.17 billion. These totals would mark changes of -6.49% and +4.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LULU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LULU currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, LULU is holding a Forward P/E ratio of 53.29. Its industry sports an average Forward P/E of 15.62, so we one might conclude that LULU is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 3.22 right now. 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 2.66 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 8% 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.