Yahoo Finance Lululemon (LULU) Stock Sinks As Market Gains: What You Should Know
Lululemon (LULU) closed the most recent trading day at $363.12, moving -1.47% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 2.7%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.45% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.9% and the S&P 500's gain of 1.07% in that time.
Lululemon will be looking to display strength as it nears its next earnings release, which is expected to be June 1, 2023. The company is expected to report EPS of $1.97, up 33.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.92 billion, up 19.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $9.37 billion, which would represent changes of +15.39% and +15.53%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.31% higher within the past month. Lululemon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 31.72. For comparison, its industry has an average Forward P/E of 10.4, which means Lululemon is trading at a premium to the group.
Investors should also note that LULU has a PEG ratio of 1.59 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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lululemon athletica inc. (LULU) : Free Stock Analysis Report