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Lululemon (LULU) Falls More Steeply Than Broader Market: What Investors Need to Know
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Lululemon (LULU - Free Report) closed the most recent trading day at $318.13, moving -0.95% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.33%.
Shares of the athletic apparel maker have appreciated by 18.78% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.26% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is expected to report EPS of $2.73, up 7.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, up 6.76% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $10.5 billion. These results would represent year-over-year changes of +9.79% and +9.17%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lululemon is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 22.91. This signifies a premium in comparison to the average Forward P/E of 20.28 for its industry.
Investors should also note that LULU has a PEG ratio of 2.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lululemon (LULU) Falls More Steeply Than Broader Market: What Investors Need to Know
Lululemon (LULU - Free Report) closed the most recent trading day at $318.13, moving -0.95% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.33%.
Shares of the athletic apparel maker have appreciated by 18.78% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.26% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is expected to report EPS of $2.73, up 7.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, up 6.76% from the prior-year quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $10.5 billion. These results would represent year-over-year changes of +9.79% and +9.17%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lululemon is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Lululemon is currently exchanging hands at a Forward P/E ratio of 22.91. This signifies a premium in comparison to the average Forward P/E of 20.28 for its industry.
Investors should also note that LULU has a PEG ratio of 2.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.