Is Most-Watched Stock lululemon athletica inc. (LULU) Worth Betting on Now?

Core Viewpoint - Lululemon's stock has underperformed compared to the S&P 500 and the textile-apparel industry, raising questions about its near-term performance [1] Earnings Estimate Revisions - Lululemon is expected to report earnings of $5.81 per share for the current quarter, reflecting a year-over-year increase of +9.8$14.34, indicating a year-over-year change of +12.3% [4] - For the next fiscal year, the earnings estimate is $15.30, representing a +6.7$3.57 billion, showing a year-over-year increase of +11.3% [8] - For the current fiscal year, the sales estimate is $10.54 billion, indicating a +9.6$11.32 billion, reflecting a +7.4% change [8] Last Reported Results and Surprise History - Lululemon reported revenues of $2.4 billion in the last quarter, a year-over-year increase of +8.7$2.87, compared to $2.53 a year ago, with a surprise of +6.69% [10] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times [10] Valuation - Lululemon has a Zacks Value Style Score of D, indicating it is trading at a premium compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued or undervalued [12][13] Conclusion - The Zacks Rank 2 suggests that Lululemon may outperform the broader market in the near term, despite concerns about its valuation and recent stock performance [15]