lululemon(LULU) ZACKS·2025-03-14 22:50Core Viewpoint - Lululemon's stock performance has lagged behind major indices, with a significant decline over the past month, while upcoming earnings are anticipated to show growth in both EPS and revenue [1][2]. Company Performance - Lululemon closed at 5.85, indicating a 10.59% increase year-over-year [2]. - Quarterly revenue is expected to reach $3.58 billion, representing an 11.68% increase from the same period last year [2]. Analyst Projections - Recent shifts in analyst projections for Lululemon are crucial for understanding near-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [3]. - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with stocks rated 1 historically yielding an average annual return of +25% since 1988 [4][5]. Valuation Metrics - Lululemon currently has a Forward P/E ratio of 20.16, which is higher than the industry average of 13.75, indicating a premium valuation [6]. - The company has a PEG ratio of 1.88, compared to the industry average of 1.65, suggesting that Lululemon's valuation is also influenced by its expected earnings growth rate [7]. Industry Context - The Textile - Apparel industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [8].