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Lululemon (LULU) Suffers a Larger Drop Than the General Market: Key Insights
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Lululemon (LULU - Free Report) closed the most recent trading day at $222.19, moving -2.93% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.4%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the athletic apparel maker had lost 5.14% lagged the Consumer Discretionary sector's gain of 6.85% and the S&P 500's gain of 4.97%.
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 $2.87 per share. This would mark a year-over-year decline of 8.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 7.05% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.49 per share and a revenue of $11.19 billion, signifying shifts of -1.02% and +5.71%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Lululemon is currently a Zacks Rank #4 (Sell).
In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 15.8. This denotes a premium relative to the industry average Forward P/E of 14.37.
Investors should also note that LULU has a PEG ratio of 1.94 right now. 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 2.03.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lululemon (LULU) Suffers a Larger Drop Than the General Market: Key Insights
Lululemon (LULU - Free Report) closed the most recent trading day at $222.19, moving -2.93% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.4%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the athletic apparel maker had lost 5.14% lagged the Consumer Discretionary sector's gain of 6.85% and the S&P 500's gain of 4.97%.
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 $2.87 per share. This would mark a year-over-year decline of 8.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 7.05% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.49 per share and a revenue of $11.19 billion, signifying shifts of -1.02% and +5.71%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Lululemon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Lululemon is currently a Zacks Rank #4 (Sell).
In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 15.8. This denotes a premium relative to the industry average Forward P/E of 14.37.
Investors should also note that LULU has a PEG ratio of 1.94 right now. 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 2.03.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.