Lululemon (LULU) closed the most recent trading day at $115.01, moving +1% from the previous trading session. This change outpaced the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.74%.
Coming into today, shares of the athletic apparel maker had lost 19.96% in the past month. In that same time, the Consumer Discretionary sector lost 6.42%, while the S&P 500 lost 6.19%.
Investors will be hoping for strength from LULU as it approaches its next earnings release, which is expected to be March 26, 2019. On that day, LULU is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 25.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 21.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $3.24 billion. These totals would mark changes of +41.31% and +22.33%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. LULU currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that LULU has a Forward P/E ratio of 31.08 right now. Its industry sports an average Forward P/E of 16.33, so we one might conclude that LULU is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 1.62 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 was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.