Ralph Lauren (RL) closed at $260.21 in the latest trading session, marking a -2.62% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%.
Heading into today, shares of the upscale clothing company had lost 0.71% over the past month, lagging the Consumer Discretionary sector's gain of 3.54% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.4, indicating a 25.93% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 8.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.67 per share and revenue of $7.33 billion, which would represent changes of +10.87% and +3.5%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ralph Lauren. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.6% higher. Currently, Ralph Lauren is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Ralph Lauren is currently exchanging hands at a Forward P/E ratio of 19.55. This denotes a premium relative to the industry average Forward P/E of 14.32.
It's also important to note that RL currently trades at a PEG ratio of 1.92. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 17% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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