Lululemon (LULU) Stock Sinks As Market Gains: Here's Why

Company Performance - Lululemon's stock was down 2.38% at $218.69, lagging behind the S&P 500's daily gain of 0.07% [1] - Prior to the latest trading session, Lululemon shares had lost 3.24%, underperforming the Consumer Discretionary sector's gain of 4.6% and the S&P 500's gain of 5.71% [1] Earnings Forecast - Lululemon is expected to report an EPS of $2.87, reflecting an 8.89% decrease from the same quarter last year [2] - Revenue is forecasted to be $2.54 billion, indicating a 7.01% increase compared to the same quarter of the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $14.47 per share, a decrease of 1.16% from the previous year, while revenue is expected to be $11.19 billion, an increase of 5.64% [3] - Recent analyst estimate revisions suggest a positive outlook for Lululemon's business [3] Stock Ranking and Valuation - Lululemon currently holds a Zacks Rank of 4 (Sell), with a recent 0.19% decrease in the Zacks Consensus EPS estimate over the last 30 days [5] - The company has a Forward P/E ratio of 15.48, slightly below the industry average of 15.52, indicating it is trading at a discount [6] - Lululemon's PEG ratio stands at 1.9, compared to the industry average of 2.07 [6] Industry Context - The Textile - Apparel industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 227, placing it in the bottom 9% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]