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Lululemon (LULU) ended the recent trading session at $315.84, demonstrating a +1.68% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq increased by 0.72%.
The the stock of athletic apparel maker has risen by 21.5% in the past month, leading the Consumer Discretionary sector's gain of 17.51% and the S&P 500's gain of 9.86%.
The upcoming earnings release of Lululemon will be of great interest to investors. The company is forecasted to report an EPS of $2.60, showcasing a 2.36% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 6.57% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.91 per share and a revenue of $11.19 billion, indicating changes of +1.84% and +5.69%, respectively, from the former year.
Any recent changes to analyst estimates for Lululemon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Lululemon holds a Zacks Rank of #3 (Hold).
In terms of valuation, Lululemon is currently trading at a Forward P/E ratio of 20.84. This valuation marks a premium compared to its industry's average Forward P/E of 14.45.
It is also worth noting that LULU currently has a PEG ratio of 2.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 202, finds itself in the bottom 19% echelons of all 250+ industries.