Lululemon (LULU) Increases Despite Market Slip: Here's What You Need to Know

In the latest trading session, Lululemon (LULU) closed at $122.78, marking a +1.41% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.77%.

The athletic apparel maker's shares have seen an increase of 5.94% over the last month, not keeping up with the Consumer Discretionary sector's gain of 6.25% and outstripping the S&P 500's gain of 2.31%.

Market participants will be closely following the financial results of Lululemon in its upcoming release. The company plans to announce its earnings on September 3, 2026. The company is predicted to post an EPS of $1.79, indicating a 42.26% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.47 billion, down 2.3% from the prior-year quarter.

LULU's full-year Zacks Consensus Estimates are calling for earnings of $10.93 per share and revenue of $11.08 billion. These results would represent year-over-year changes of -17.57% and -0.24%, respectively.

Any recent changes to analyst estimates for Lululemon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. At present, Lululemon boasts a Zacks Rank of #3 (Hold).

Investors should also note Lululemon's current valuation metrics, including its Forward P/E ratio of 11.08. For comparison, its industry has an average Forward P/E of 15.37, which means Lululemon is trading at a discount to the group.

It's also important to note that LULU currently trades at a PEG ratio of 3.97. 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. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.97.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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