The most recent trading session ended with Ralph Lauren (RL) standing at $219.96, reflecting a -0.09% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 1.26%.
The upscale clothing company's stock has dropped by 2.23% in the past month, exceeding the Consumer Discretionary sector's loss of 4.48% and the S&P 500's loss of 4.77%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.96, indicating a 14.62% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.63 billion, showing a 4.05% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Ralph Lauren. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.24% fall in the Zacks Consensus EPS estimate. As of now, Ralph Lauren holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ralph Lauren has a Forward P/E ratio of 16.2 right now. This signifies a premium in comparison to the average Forward P/E of 12.15 for its industry.
Also, we should mention that RL has a PEG ratio of 1.17. 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. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 1.5.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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