Markets

Has lululemon athletica (LULU) Outpaced Other Consumer Discretionary Stocks This Year?

Investors focused on the Consumer Discretionary space have likely heard of lululemon athletica (LULU), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of LULU and the rest of the Consumer Discretionary group's stocks.

lululemon athletica is a member of our Consumer Discretionary group, which includes 257 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. LULU is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for LULU's full-year earnings has moved 3.51% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, LULU has returned 51.57% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -6.27% on a year-to-date basis. As we can see, lululemon athletica is performing better than its sector in the calendar year.

Looking more specifically, LULU belongs to the Textile - Apparel industry, which includes 21 individual stocks and currently sits at #56 in the Zacks Industry Rank. This group has gained an average of 1.16% so far this year, so LULU is performing better in this area.

Investors in the Consumer Discretionary sector will want to keep a close eye on LULU as it attempts to continue its solid performance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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