Lululemon (LULU) share declines as market moves up: what you need to know

Lululemon (LULU) closed the most recent trading day at $ 334.08, or -1.33% from the previous trading session. This change is lower than the S&P 500’s daily gain of 0.39%. Elsewhere, the Dow Jones gained 0.3%, while the tech-rich Nasdaq added 0.57%.

Prior to today, shares of the sportswear maker had lost 7.81% in the past month, trailing the gain in the consumer discretionary sector of 3.79% and the gain of 4.69% in the S&P 500 during this period.

LULU will seek to demonstrate strength as the next publication of its results approaches. On that day, LULU is expected to report earnings of $ 2.48 per share, which would represent 8.77% year-over-year growth. Our most recent consensus estimate projects quarterly revenue of $ 1.66 billion, up 18.74% from the previous year.

Any recent changes in analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, the positive estimate revisions reflect analysts’ optimism about the business and profitability of the company.

Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

Zacks’ ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive record of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. The Zacks Consensus EPS estimate has risen 0.62% over the past month. LULU currently holds a Zacks rank of 3 (Maintain).

In terms of valuation, LULU is currently trading at a forward P / E ratio of 50.91. This valuation marks a premium over the sector’s average forward P / E of 19.61.

Meanwhile, LULU’s PEG ratio is currently 2.78. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Textiles – Apparel stocks have, on average, a PEG ratio of 2.46 based on yesterday’s closing prices.

The Textile – Clothing industry is part of the Consumer discretionary sector. This industry currently has a Zacks Industry Rank of 103, which places it in the top 41% of 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

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