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Lululemon (LULU) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest market close, Lululemon (LULU - Free Report) reached $317.11, with a +0.63% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.17%.

Coming into today, shares of the athletic apparel maker had gained 5.4% in the past month. In that same time, the Consumer Discretionary sector gained 8.31%, while the S&P 500 gained 1.69%.

Analysts and investors alike will be keeping a close eye on the performance of Lululemon in its upcoming earnings disclosure. The company's earnings report is set to go public on December 5, 2024. The company's upcoming EPS is projected at $2.73, signifying a 7.91% increase compared to the same quarter of the previous year. 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 $10.41 billion, signifying shifts of +9.79% and +8.24%, respectively, from the last year.

Any recent changes to analyst estimates for Lululemon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lululemon is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 22.48. This represents a premium compared to its industry's average Forward P/E of 19.04.

It's also important to note that LULU currently trades at a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.24.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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