In the latest market close, Ralph Lauren (RL) reached $240.37, with a +1.34% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.27%.
Prior to today's trading, shares of the upscale clothing company had gained 30.08% over the past month. This has outpaced the Consumer Discretionary sector's gain of 13.89% and the S&P 500's gain of 10.62% in that time.
The upcoming earnings release of Ralph Lauren will be of great interest to investors. The company's earnings report is expected on May 22, 2025. On that day, Ralph Lauren is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 14.62%. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 4.05% from the prior-year quarter.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% downward. Ralph Lauren is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ralph Lauren has a Forward P/E ratio of 17.45 right now. Its industry sports an average Forward P/E of 13.55, so one might conclude that Ralph Lauren is trading at a premium comparatively.
We can additionally observe that RL currently boasts a PEG ratio of 1.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.55 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 28% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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