Yahoo Finance Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
Lululemon (LULU) closed the most recent trading day at $427.94, moving +1.47% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day.
Coming into today, shares of the athletic apparel maker had lost 2.52% in the past month. In that same time, the Consumer Discretionary sector lost 0.25%, while the S&P 500 gained 3.46%.
LULU will be looking to display strength as it nears its next earnings release. In that report, analysts expect LULU to post earnings of $1.38 per share. This would mark year-over-year growth of 18.97%. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 27.95% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.50 per share and revenue of $6.26 billion. These totals would mark changes of +59.57% and +42.16%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LULU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LULU currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, LULU is holding a Forward P/E ratio of 56.24. Its industry sports an average Forward P/E of 16.79, so we one might conclude that LULU is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 2.81. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 0.77 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 12, which puts it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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