Ralph Lauren (RL) ended the recent trading session at $289.49, demonstrating a +1.13% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.05%.
The upscale clothing company's stock has climbed by 6.89% in the past month, exceeding the Consumer Discretionary sector's gain of 6.61% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2025. On that day, Ralph Lauren is projected to report earnings of $3.4 per share, which would represent year-over-year growth of 25.93%. Simultaneously, our latest consensus estimate expects the revenue to be $1.64 billion, showing a 8.27% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.63 per share and a revenue of $7.31 billion, indicating changes of +10.54% and +3.23%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Ralph Lauren. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. Ralph Lauren is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ralph Lauren is presently being traded at a Forward P/E ratio of 21. For comparison, its industry has an average Forward P/E of 14.78, which means Ralph Lauren is trading at a premium to the group.
One should further note that RL currently holds a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 2.08.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 15% of over 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.
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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Ralph Lauren Corporation (RL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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