Ralph Lauren (RL – Free Report) ended the latest trading session at $370.06, indicating a change of +1.19% from the previous day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.79%. Elsewhere, the Dow Jones rose 0.14%, while the tech-heavy Nasdaq added 1.38%.
The upscale clothing company’s shares saw gains of 10.53% compared to the previous month, outperforming the Consumer Discretionary sector with its gain of 2.39%, and the S&P 500 Index’s gain of 0.87%.
Market participants will closely follow Ralph Lauren’s financial results in its next release. The company is expected to report EPS of $5.75, displaying an upward move of 19.29% from the corresponding quarter of the previous year. Meanwhile, our current consensus estimate projects revenue to reach $2.3 billion, suggesting growth of 7.27% compared to the corresponding quarter a year ago.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.41 per share and revenue of $7.75 billion, which would represent changes of +24.98% and +9.54%, respectively, from the prior year.
Investors should also note any recent revisions to analyst estimates for Ralph Lauren. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research suggests that these estimate revisions have a direct relationship to impending stock price performance. Investors can benefit from this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance, validated by third-party audits, with #1 ranked stocks producing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained steady. As of now, Ralph Lauren carries a Zacks Rank #2 (Buy).
Investors should also note Ralph Lauren’s current valuation metrics, including its forward P/E ratio of 23.74. This valuation represents a premium compared to its industry’s average Forward P/E of 17.93.
Also, we should mention that RL has a PEG ratio of 1.77. This popular metric is similar to the widely known P/E ratio, with the difference that the P/E ratio also takes into account the company’s expected earnings growth rate. The average price to price (PEG) ratio for the textile and apparel sector was 2.85 at market close yesterday.
The textile and apparel industry is part of the consumer discretionary sector. This group has a Zacks Industry Rank of 42, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of ranked industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to track all of the stock’s movement metrics and more in the upcoming trading sessions.
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