Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5971
    -0.0004 (-0.07%)
     
  • NZD/EUR

    0.5537
    +0.0004 (+0.07%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.3190
    -0.0740 (-0.08%)
     

Lululemon (LULU) Gains But Lags Market: What You Should Know

Lululemon (LULU) closed the most recent trading day at $281.50, moving +0.03% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.48%. At the same time, the Dow added 2.21%, and the tech-heavy Nasdaq gained 0.77%.

LULU will be looking to display strength as it nears its next earnings release. In that report, analysts expect LULU to post earnings of $0.29 per share. This would mark a year-over-year decline of 60.81%. Meanwhile, our latest consensus estimate is calling for revenue of $724.78 million, down 7.35% from the prior-year quarter.

LULU's full-year Zacks Consensus Estimates are calling for earnings of $4.69 per share and revenue of $4.21 billion. These results would represent year-over-year changes of -4.87% and +5.92%, respectively.

Any recent changes to analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

ADVERTISEMENT

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.

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. The Zacks Consensus EPS estimate has moved 1.64% higher within the past month. LULU is currently a Zacks Rank #3 (Hold).

In terms of valuation, LULU is currently trading at a Forward P/E ratio of 60.07. This valuation marks a premium compared to its industry's average Forward P/E of 19.67.

It is also worth noting that LULU currently has a PEG ratio of 3.63. 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 Textile - Apparel was holding an average PEG ratio of 3.12 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% 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.

Click to get this free report lululemon athletica inc. (LULU) : Free Stock Analysis Report To read this article on Zacks.com click here.