In the latest trading session, Lululemon (LULU) closed at $205.58, marking a -0.19% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.
Coming into today, shares of the athletic apparel maker had gained 6.98% in the past month. In that same time, the Consumer Discretionary sector gained 2.73%, while the S&P 500 gained 2.7%.
Investors will be hoping for strength from LULU as it approaches its next earnings release. On that day, LULU is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $894.65 million, up 19.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $3.85 billion. These totals would mark changes of +23.44% and +17.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LULU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. LULU is currently a Zacks Rank #2 (Buy).
In terms of valuation, LULU is currently trading at a Forward P/E ratio of 43.46. For comparison, its industry has an average Forward P/E of 14.68, which means LULU is trading at a premium to the group.
Investors should also note that LULU has a PEG ratio of 2.39 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 2.25 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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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