Lululemon (LULU) closed at $120.32 in the latest trading session, marking a +2.11% move from the prior day. This change outpaced the S&P 500's 0.21% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the athletic apparel maker have appreciated by 3.1% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.15%, and the S&P 500's gain of 1.7%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. In that report, analysts expect Lululemon to post earnings of $1.79 per share. This would mark a year-over-year decline of 42.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.47 billion, down 2.26% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.94 per share and revenue of $11.08 billion. These totals would mark changes of -17.5% and -0.22%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 1.77% downward. Lululemon is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Lululemon is currently being traded at a Forward P/E ratio of 10.77. This signifies a discount in comparison to the average Forward P/E of 16.28 for its industry.
Investors should also note that LULU has a PEG ratio of 3.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU's industry had an average PEG ratio of 2.17 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 178, which puts it in the bottom 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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lululemon athletica inc. (LULU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).