Yahoo Finance Lululemon (LULU) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Lululemon (LULU) closed at $322.98, marking a -1.25% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.23%.
Prior to today's trading, shares of the athletic apparel maker had lost 9.6% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.69% and the S&P 500's gain of 7.08% in that time.
Investors will be eagerly watching for the performance of Lululemon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.39, marking a 4.82% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.2 billion, showing a 9.96% 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 $10.77 billion, which would represent changes of +10.81% and +11.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lululemon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Lululemon is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Lululemon is presently trading at a Forward P/E ratio of 23.11. Its industry sports an average Forward P/E of 13.5, so one might conclude that Lululemon is trading at a premium comparatively.
Meanwhile, LULU's PEG ratio is currently 1.16. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Textile - Apparel was holding an average PEG ratio of 1.58 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 63, which puts it in the top 25% 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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lululemon athletica inc. (LULU) : Free Stock Analysis Report
