In the latest market close, Lululemon (LULU) reached $320.66, with a +0.36% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.83%.
The athletic apparel maker's stock has climbed by 7.26% in the past month, falling short of the Consumer Discretionary sector's gain of 8.74% and outpacing the S&P 500's gain of 3.11%.
Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company's earnings report is set to go public on December 5, 2024. The company is forecasted to report an EPS of $2.69, showcasing a 6.32% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.35 billion, showing a 6.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.04 per share and a revenue of $10.41 billion, demonstrating changes of +9.95% and +8.25%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).
Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 22.76. This expresses a premium compared to the average Forward P/E of 19.78 of its industry.
Meanwhile, LULU's PEG ratio is currently 2.32. 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 2.33 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 29% echelons 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.
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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