Lululemon (LULU) Outperforms Market Rally: Key Information for Investors

Lululemon Outperforms Broader Market in Latest Session

Lululemon (LULU) ended the most recent trading day at $182.55, reflecting a 1.7% increase from its previous close. This advance surpassed the S&P 500's daily rise of 0.81%. In comparison, the Dow gained 0.63%, and the Nasdaq, which is weighted toward technology stocks, climbed 1.26%.

Recent Stock Performance

Over the past month, Lululemon's share price has declined by 3.7%. This drop is steeper than the Consumer Discretionary sector's 2.77% decrease and the S&P 500's modest 0.25% loss during the same period.

Upcoming Earnings and Analyst Expectations

Investors are closely watching Lululemon's upcoming earnings announcement. Current projections suggest the company will post earnings per share (EPS) of $4.74, which would represent a 22.8% decrease compared to the same quarter last year. Revenue is expected to reach $3.6 billion, a slight dip of 0.33% year-over-year, according to the Zacks Consensus Estimate.

For the full fiscal year, analysts anticipate Lululemon will report EPS of $13.06 and total revenue of $11.07 billion. These figures would mark a 10.79% decline in earnings and a 4.57% increase in revenue from the previous year.

Analyst Estimate Revisions and Zacks Rank

Recent adjustments to analyst forecasts for Lululemon highlight shifting expectations for the company's near-term outlook. Upward revisions often signal increased confidence in the business and its profitability. Research shows that such estimate changes are closely linked to future stock performance.

Zacks has developed a proprietary ranking system that incorporates these estimate changes. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a strong track record, with #1-ranked stocks delivering an average annual return of 25% since 1988. Over the past month, the consensus EPS estimate for Lululemon has increased by 0.32%. Currently, Lululemon holds a Zacks Rank of #3 (Hold).

Valuation Metrics

Lululemon is currently valued at a Forward Price-to-Earnings (P/E) ratio of 14.02, which is lower than the industry average Forward P/E of 18.25. This suggests that Lululemon's shares are trading at a discount compared to its peers.

The company's Price/Earnings-to-Growth (PEG) ratio stands at 11.31. While similar to the P/E ratio, the PEG ratio also factors in expected earnings growth. In contrast, the Textile - Apparel industry had an average PEG ratio of 2.29 at the close of the previous session.

Industry Overview

Lululemon operates within the Textile - Apparel industry, which is part of the Consumer Discretionary sector. With a current Zacks Industry Rank of 61, this group is positioned in the top 25% among more than 250 industries tracked.

The Zacks Industry Rank assesses the strength of industry groups by averaging the Zacks Ranks of their constituent stocks. Historically, industries in the top half of the rankings outperform those in the bottom half by a two-to-one margin.

Stay Informed on Lululemon

For ongoing updates on Lululemon's performance in upcoming trading sessions, consider visiting Zacks Investment Research.

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