Have you been paying attention to shares of Ralph Lauren (RL)? Shares have been on the move with the stock up 2.3% over the past month. The stock hit a new 52-week high of $380.86 in the previous session. Ralph Lauren has gained 6.9% since the start of the year compared to the -2.8% move for the Zacks Consumer Discretionary sector and the 5.2% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 5, 2026, Ralph Lauren reported EPS of $6.22 versus consensus estimate of $5.8.
For the current fiscal year, Ralph Lauren is expected to post earnings of $16.25 per share on $7.94 in revenues. This represents a 31.87% change in EPS on a 12.2% change in revenues. For the next fiscal year, the company is expected to earn $17.9 per share on $8.41 in revenues. This represents a year-over-year change of 10.14% and 5.91%, respectively.
Valuation Metrics
While Ralph Lauren has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ralph Lauren has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 23.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 19X. On a trailing cash flow basis, the stock currently trades at 23.1X versus its peer group's average of 10.3X. Additionally, the stock has a PEG ratio of 1.47. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Ralph Lauren currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ralph Lauren fits the bill. Thus, it seems as though Ralph Lauren shares could have potential in the weeks and months to come.
How Does RL Stack Up to the Competition?
Shares of RL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Crocs, Inc. (CROX). CROX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Crocs, Inc. beat our consensus estimate by 19.27%, and for the current fiscal year, CROX is expected to post earnings of $13.22 per share on revenue of $4.05 billion.
Shares of Crocs, Inc. have gained 15.2% over the past month, and currently trade at a forward P/E of 7.43X and a P/CF of 6.69X.
The Textile - Apparel industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RL and CROX, even beyond their own solid fundamental situation.
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Ralph Lauren Corporation (RL): Free Stock Analysis Report Crocs, Inc. (CROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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