In the latest market close, Ralph Lauren (RL) reached $224.51, with a -0.2% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the upscale clothing company have depreciated by 4.82% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 1.14% and the S&P 500's loss of 0.7%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company's earnings report is set to go public on May 22, 2025. The company's earnings per share (EPS) are projected to be $1.96, reflecting a 14.62% increase from the same 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.
Investors should also note any recent changes to analyst estimates for Ralph Lauren. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. As of now, Ralph Lauren holds a Zacks Rank of #3 (Hold).
Looking at valuation, Ralph Lauren is presently trading at a Forward P/E ratio of 16.55. This signifies a premium in comparison to the average Forward P/E of 12.45 for its industry.
Also, we should mention that RL has a PEG ratio of 1.2. 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. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.48.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 37% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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