In the latest trading session, Lululemon (LULU) closed at $227.13, marking a -0.77% move from the previous day. This change was narrower than the S&P 500's 2.81% loss on the day. Elsewhere, the Dow lost 2.94%, while the tech-heavy Nasdaq lost 3%.
Coming into today, shares of the athletic apparel maker had lost 7.09% in the past month. In that same time, the Consumer Discretionary sector lost 7.31%, while the S&P 500 lost 3.97%.
Investors will be hoping for strength from LULU as it approaches its next earnings release. The company is expected to report EPS of $2.25, up 21.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 18.4% from the year-ago period.
Investors might also notice 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.
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. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. LULU is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, LULU is holding a Forward P/E ratio of 39.77. For comparison, its industry has an average Forward P/E of 12.79, which means LULU is trading at a premium to the group.
We can also see that LULU currently has a PEG ratio of 2.11. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
lululemon athletica inc. (LULU): Free Stock Analysis Report
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