Lululemon (LULU) closed at $278.55 in the latest trading session, marking a +0.43% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.

The athletic apparel maker's stock has climbed by 5.18% in the past month, exceeding the Consumer Discretionary sector's gain of 2.21% and the S&P 500's gain of 0.38%.

The investment community will be paying close attention to the earnings performance of Lululemon in its upcoming release. The company is forecasted to report an EPS of $2.60, showcasing a 2.36% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.35 billion, indicating a 6.57% growth compared to the corresponding quarter of the prior year.

LULU's full-year Zacks Consensus Estimates are calling for earnings of $14.91 per share and revenue of $11.19 billion. These results would represent year-over-year changes of +1.84% and +5.69%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Lululemon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. Lululemon currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Lululemon is presently being traded at a Forward P/E ratio of 18.61. This indicates a premium in contrast to its industry's Forward P/E of 13.05.

We can additionally observe that LULU currently boasts a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

This article originally published on Zacks Investment Research (zacks.com).

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