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Lululemon (LULU) Rises Higher Than Market: Key Facts

Lululemon (LULU) ended the recent trading session at $364.59, demonstrating a +1.67% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.2% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.59%.

Prior to today's trading, shares of the athletic apparel maker had lost 6.97% over the past month. This has lagged the Consumer Discretionary sector's loss of 6.73% and the S&P 500's loss of 4.16% in that time.

Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is forecasted to report an EPS of $2.39, showcasing a 4.82% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.2 billion, showing a 9.93% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.15 per share and revenue of $10.76 billion, which would represent changes of +10.81% and +11.88%, respectively, from the prior year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 25.56. This represents a premium compared to its industry's average Forward P/E of 11.53.

We can also see that LULU currently has a PEG ratio of 1.28. 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 1.43 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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lululemon athletica inc. (LULU) : Free Stock Analysis Report

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