In the latest close session, Ralph Lauren (RL) was up +1.05% at $276.35. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
Prior to today's trading, shares of the upscale clothing company had lost 1.53% lagged the Consumer Discretionary sector's gain of 6.1% and the S&P 500's gain of 5.95%.
The investment community will be closely monitoring the performance of Ralph Lauren in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.41, marking a 26.3% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.64 billion, showing a 8.34% escalation compared to the year-ago quarter.
RL's full-year Zacks Consensus Estimates are calling for earnings of $13.69 per share and revenue of $7.33 billion. These results would represent year-over-year changes of +11.03% and +3.5%, respectively.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. 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 19.98 right now. This expresses a premium compared to the average Forward P/E of 14 of its industry.
It's also important to note that RL currently trades at a PEG ratio of 1.96. 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 Textile - Apparel industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 206, placing it within the bottom 17% of over 250 industries.
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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