Lululemon (LULU) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lululemon (LULU) closed at $404.36, marking a +1.64% move from the previous day.
In the latest trading session, Lululemon (LULU) closed at $404.36, marking a +1.64% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%.
Prior to today's trading, shares of the athletic apparel maker had lost 1.23% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.2% and the S&P 500's gain of 2.85% in that time.
Wall Street will be looking for positivity from LULU as it approaches its next earnings report date. The company is expected to report EPS of $1.20, up 62.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 47.88% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $7.10 per share and revenue of $5.96 billion. These results would represent year-over-year changes of +51.06% and +35.33%, respectively.
It is also important to note the recent changes to analyst estimates for LULU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.5% higher. LULU is currently a Zacks Rank #2 (Buy).
Looking at its valuation, LULU is holding a Forward P/E ratio of 56.05. Its industry sports an average Forward P/E of 17.77, so we one might conclude that LULU is trading at a premium comparatively.
It is also worth noting that LULU currently has a PEG ratio of 3.06. 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 1.1 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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