Lululemon (LULU) Gains As Market Dips: What You Should Know

Entrepreneurs News


This story originally appeared on Zacks

Lululemon (LULU) closed at $ 319.94 in the most recent trading session, marking a + 0.74% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.24%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.04%.

– Zacks

Coming into today, shares of the athletic apparel maker had gained 0.53% in the past month. At that same time, the Consumer Discretionary sector gained 1.86%, while the S&P 500 gained 0.73%.

Wall Street will be looking for positivity from Lululemon as it approaches its next earnings report date. In that report, analysts expect Lululemon to post earnings of $ 3.27 per share. This would mark year-over-year growth of 26.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $ 2.13 billion, up 23.37% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Lululemon is currently a Zacks Rank # 3 (Hold).

Looking at its valuation, Lululemon is holding a Forward P / E ratio of 34.82. This valuation marks a premium compared to its industry’s average Forward P / E of 12.42.

It is also worth noting that LULU currently has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P / E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Textile – Apparel industry currently had an average PEG ratio of 1.02 as of yesterday’s close.

The Textile – Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?

Last year’s 2021 Zacks Top 10 Stocks portfolio returned gains as high as + 147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Do not miss your chance to get in on these long-term buys

Access Zacks Top 10 Stocks for 2022 today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

lululemon athletica inc. (LULU): Free Stock Analysis Report

To read this article on Zacks.com click here.



Source link

Leave a Reply

Your email address will not be published.