Lululemon (LULU – Free Report) closed at $311.03 in the latest trading session, marking a +0.44% move from the prior day. This change lagged the S&P 500’s 2.13% gain on the day. Meanwhile, the Dow experienced a rise of 1.65%, and the technology-dominated Nasdaq saw an increase of 2.61%.
Prior to today’s trading, shares of the athletic apparel maker had lost 20.77% over the past month. This has lagged the Consumer Discretionary sector’s loss of 12.53% and the S&P 500’s loss of 9.57% in that time.
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 March 27, 2025. The company’s earnings per share (EPS) are projected to be $5.85, reflecting a 10.59% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.58 billion, up 11.68% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lululemon. These revisions help to show the ever-changing nature 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% decrease. At present, Lululemon boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lululemon has a Forward P/E ratio of 20.16 right now. Its industry sports an average Forward P/E of 13.75, so one might conclude that Lululemon is trading at a premium comparatively.
Also, we should mention that LULU has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As the market closed yesterday, the Textile – Apparel industry was having an average PEG ratio of 1.65.
The Textile – Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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