Ralph Lauren (RL) ended the recent trading session at $360.32, demonstrating a -1.92% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.43%.
Shares of the upscale clothing company have appreciated by 2.59% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.73%, and the S&P 500's gain of 0.18%.
The investment community will be closely monitoring the performance of Ralph Lauren in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2026. The company is expected to report EPS of $5.55, up 15.15% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.31 billion, showing a 7.77% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.42 per share and revenue of $7.78 billion. These totals would mark changes of +25.06% and +9.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ralph Lauren. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 0.89% higher. Ralph Lauren presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Ralph Lauren is currently trading at a Forward P/E ratio of 23.82. This expresses a premium compared to the average Forward P/E of 16.51 of its industry.
We can also see that RL currently has a PEG ratio of 1.63. 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. RL's industry had an average PEG ratio of 2.8 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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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