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Lululemon (LULU) Exceeds Market Returns: Some Facts to Consider
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Lululemon (LULU - Free Report) closed at $278.25 in the latest trading session, marking a +1.71% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the athletic apparel maker had gained 5.17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.91% and lagged the S&P 500's gain of 5.36% in that time.
The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. In that report, analysts expect Lululemon to post earnings of $2.73 per share. This would mark year-over-year growth of 7.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.35 billion, indicating a 6.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.02 per share and a revenue of $10.5 billion, signifying shifts of +9.79% and +9.17%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 19.52. Its industry sports an average Forward P/E of 19.65, so one might conclude that Lululemon is trading at a discount comparatively.
Also, we should mention that LULU has a PEG ratio of 1.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.05.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Lululemon (LULU) Exceeds Market Returns: Some Facts to Consider
Lululemon (LULU - Free Report) closed at $278.25 in the latest trading session, marking a +1.71% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the athletic apparel maker had gained 5.17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.91% and lagged the S&P 500's gain of 5.36% in that time.
The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. In that report, analysts expect Lululemon to post earnings of $2.73 per share. This would mark year-over-year growth of 7.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.35 billion, indicating a 6.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.02 per share and a revenue of $10.5 billion, signifying shifts of +9.79% and +9.17%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Lululemon. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Lululemon is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 19.52. Its industry sports an average Forward P/E of 19.65, so one might conclude that Lululemon is trading at a discount comparatively.
Also, we should mention that LULU has a PEG ratio of 1.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.05.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.