In the latest trading session, Lululemon (LULU) closed at $473.24, marking a +1.59% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the athletic apparel maker had gained 12.41% over the past month, outpacing the Consumer Discretionary sector's gain of 1.5% and the S&P 500's gain of 4.99% in that time.
Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. On that day, Lululemon is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 19.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 28.05% from the year-ago period.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $7.51 per share and revenue of $6.26 billion. These results would represent year-over-year changes of +59.79% and +42.19%, respectively.
Investors should also note any recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Lululemon is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Lululemon currently has a Forward P/E ratio of 62.02. Its industry sports an average Forward P/E of 17.16, so we one might conclude that Lululemon is trading at a premium comparatively.
It is also worth noting that LULU currently has a PEG ratio of 3.1. 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. The Textile - Apparel was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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