Ralph Lauren (RL) ended the recent trading session at $331.20, demonstrating a -1.89% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.23% for the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the upscale clothing company had gained 9.37% in the past month. In that same time, the Consumer Discretionary sector lost 4.38%, while the S&P 500 gained 3.57%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. On that day, Ralph Lauren is projected to report earnings of $3.45 per share, which would represent year-over-year growth of 35.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.9 billion, up 9.86% from the year-ago period.
RL's full-year Zacks Consensus Estimates are calling for earnings of $15 per share and revenue of $7.57 billion. These results would represent year-over-year changes of +21.65% and +6.98%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.57% increase. Ralph Lauren currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Ralph Lauren is currently trading at a Forward P/E ratio of 22.5. This denotes a premium relative to the industry average Forward P/E of 16.91.
One should further note that RL currently holds a PEG ratio of 1.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 2.51.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 13% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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