Lululemon (LULU) closed the most recent trading day at $167.28, moving +2.68% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.2% for the day. Elsewhere, the Dow gained 1.79%, while the tech-heavy Nasdaq added 1.52%.
Prior to today's trading, shares of the athletic apparel maker had lost 1.6% lagged the Consumer Discretionary sector's gain of 4.18% and the S&P 500's gain of 5.15%.
The upcoming earnings release of Lululemon will be of great interest to investors. It is anticipated that the company will report an EPS of $1.69, marking a 35% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.43 billion, reflecting a 2.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.34 per share and revenue of $11.5 billion, which would represent changes of -6.94% and +3.54%, respectively, from the prior year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.52% decrease. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 13.2. This indicates a discount in contrast to its industry's Forward P/E of 17.61.
We can also see that LULU currently has a PEG ratio of 4.99. 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. The average PEG ratio for the Textile - Apparel industry stood at 1.96 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 146, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>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
This article originally published on Zacks Investment Research (zacks.com).