Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.31
    +0.58 (+0.70%)
     

  • Bitcoin CAD

    88,316.36
    +910.61 (+1.04%)
     

  • CMC Crypto 200

    1,373.06
    +60.44 (+4.60%)
     

  • GOLD FUTURES

    2,406.00
    +8.00 (+0.33%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     
MARKETS LIVE BLOG:

S&P 500 SLIPS BELOW 5,000; NASDAQ SINKS ON TECH DRAG

Nvidia tumbles 10%, Amazon loses more than 2% while Apple ends 1% lower

Why Earnings Season Could Be Great for Lululemon (LULU)

Zacks Equity Research
·2 min read

Investors are always looking for stocks that are poised to beat at earnings season and Lululemon Athletica Inc. LULU, may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Lululemon is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for LULU in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at $1.96 per share for LULU, compared to a broader Zacks Consensus Estimate of $1.95 per share. This suggests that analysts have very recently bumped up their estimates for LULU, giving the stock a Zacks Earnings ESP of +0.27% heading into earnings season.

lululemon athletica inc. Price and EPS Surprise

lululemon athletica inc. Price and EPS Surprise
lululemon athletica inc. Price and EPS Surprise

lululemon athletica inc. price-eps-surprise | lululemon athletica inc. Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

ADVERTISEMENT

Given that LULU has a Zacks Rank #2(Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Lululemon, and that a beat might be in the cards for the upcoming report.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research