Lululemon (LULU) closed at $314.39 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the athletic apparel maker had gained 2.3% over the past month, outpacing the Consumer Discretionary sector's loss of 3.29% and the S&P 500's loss of 1.56% in that time.
LULU will be looking to display strength as it nears its next earnings release. In that report, analysts expect LULU to post earnings of $0.49 per share. This would mark a year-over-year decline of 48.96%. Our most recent consensus estimate is calling for quarterly revenue of $821.74 million, down 6.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $4.04 billion, which would represent changes of -11.36% and +1.43%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 1.81% lower. LULU is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 72.2 right now. This valuation marks a premium compared to its industry's average Forward P/E of 37.39.
Investors should also note that LULU has a PEG ratio of 3.94 right now. 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 4.45 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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