Ralph Lauren (RL) closed at $369.15 in the latest trading session, marking a +1.73% move from the prior day. This change outpaced the S&P 500's 0.26% gain on the day. On the other hand, the Dow registered a gain of 0.6%, and the technology-centric Nasdaq increased by 0.25%.
Prior to today's trading, shares of the upscale clothing company had lost 0.78% was narrower than the Consumer Discretionary sector's loss of 1.08% and lagged the S&P 500's gain of 1.57%.
The investment community will be paying close attention to the earnings performance of Ralph Lauren in its upcoming release. The company is predicted to post an EPS of $5.74, indicating a 19.09% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.31 billion, up 7.89% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.37 per share and revenue of $7.77 billion, which would represent changes of +24.66% and +9.76%, respectively, from the prior year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Ralph Lauren is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 23.61. Its industry sports an average Forward P/E of 16.68, so one might conclude that Ralph Lauren is trading at a premium comparatively.
One should further note that RL currently holds a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel industry had an average PEG ratio of 2.9 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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