Ralph Lauren (RL) closed at $353.61 in the latest trading session, marking a -1.41% move from the prior day. This change lagged the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%.
Shares of the upscale clothing company witnessed a gain of 0.78% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.56%, and underperforming the S&P 500's gain of 0.79%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. In that report, analysts expect Ralph Lauren to post earnings of $5.72 per share. This would mark year-over-year growth of 18.67%. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 7.27% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $15.29 per share and a revenue of $7.75 billion, demonstrating changes of +24.01% and +9.54%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.8% decrease. Ralph Lauren currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Ralph Lauren is currently exchanging hands at a Forward P/E ratio of 23.47. This signifies a premium in comparison to the average Forward P/E of 17.86 for its industry.
Investors should also note that RL has a PEG ratio of 1.75 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel industry had an average PEG ratio of 3.2 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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