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In the latest market close, Lululemon (LULU) reached $271.27, with a +1.02% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Coming into today, shares of the athletic apparel maker had lost 5.14% in the past month. In that same time, the Consumer Discretionary sector lost 0.09%, while the S&P 500 lost 0.84%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company is forecasted to report an EPS of $2.60, showcasing a 2.36% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.35 billion, indicating a 6.57% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $14.91 per share and a revenue of $11.19 billion, demonstrating changes of +1.84% and +5.69%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-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. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. Lululemon presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 18.01. This signifies a premium in comparison to the average Forward P/E of 12.04 for its industry.
Meanwhile, LULU's PEG ratio is currently 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LULU's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 31% of all 250+ industries.