In the latest trading session, Lululemon (LULU) closed at $383.12, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 1.82%.
Coming into today, shares of the athletic apparel maker had gained 3.8% in the past month. In that same time, the Consumer Discretionary sector lost 0.38%, while the S&P 500 gained 0.39%.
Lululemon will be looking to display strength as it nears its next earnings release. On that day, Lululemon is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 30.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.48% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $9.38 billion. These results would represent year-over-year changes of +14% and +15.66%, respectively.
Investors might also notice recent changes to analyst estimates for Lululemon. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lululemon currently has a Forward P/E ratio of 33.18. For comparison, its industry has an average Forward P/E of 11.14, which means Lululemon is trading at a premium to the group.
Also, we should mention that LULU has a PEG ratio of 1.66. 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 was holding an average PEG ratio of 1.23 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 196, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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