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Here's Why Lululemon (LULU) Fell More Than Broader Market
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Lululemon (LULU - Free Report) closed at $293.14 in the latest trading session, marking a -1.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 0.96%, while the tech-heavy Nasdaq depreciated by 1.6%.
Shares of the athletic apparel maker witnessed a gain of 13.4% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 3.47% and the S&P 500's gain of 2.68%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company is predicted to post an EPS of $2.76, indicating a 9.09% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.35 billion, indicating a 6.76% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.02 per share and revenue of $10.5 billion, indicating changes of +9.79% and +9.17%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.08% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 21.32. Its industry sports an average Forward P/E of 19.64, so one might conclude that Lululemon is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 2.17 right now. 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 2.04 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Here's Why Lululemon (LULU) Fell More Than Broader Market
Lululemon (LULU - Free Report) closed at $293.14 in the latest trading session, marking a -1.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 0.96%, while the tech-heavy Nasdaq depreciated by 1.6%.
Shares of the athletic apparel maker witnessed a gain of 13.4% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 3.47% and the S&P 500's gain of 2.68%.
The investment community will be closely monitoring the performance of Lululemon in its forthcoming earnings report. The company is predicted to post an EPS of $2.76, indicating a 9.09% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.35 billion, indicating a 6.76% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.02 per share and revenue of $10.5 billion, indicating changes of +9.79% and +9.17%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.08% lower. Lululemon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 21.32. Its industry sports an average Forward P/E of 19.64, so one might conclude that Lululemon is trading at a premium comparatively.
Investors should also note that LULU has a PEG ratio of 2.17 right now. 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 2.04 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.