The latest trading session saw Lululemon (LULU – Free Report) ending at $324.45, denoting a -1.55% adjustment from its last day’s close. This change lagged the S&P 500’s daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.33%.
Shares of the athletic apparel maker have depreciated by 10.25% over the course of the past month, underperforming the Consumer Discretionary sector’s loss of 8.76% and the S&P 500’s loss of 7.48%.
The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. The company is slated to reveal its earnings on March 27, 2025. On that day, Lululemon is projected to report earnings of $5.85 per share, which would represent year-over-year growth of 10.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.58 billion, up 11.56% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Lululemon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, there’s been a 0.05% fall in the Zacks Consensus EPS estimate. Lululemon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lululemon is holding a Forward P/E ratio of 21.44. Its industry sports an average Forward P/E of 13.87, so one might conclude that Lululemon is trading at a premium comparatively.
We can also see that LULU currently has a PEG ratio of 2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. LULU’s industry had an average PEG ratio of 1.75 as of yesterday’s close.
The Textile – Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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