Ralph Lauren (RL) closed the most recent trading day at $413.01, moving +2.27% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 1.09%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.91%.
Coming into today, shares of the upscale clothing company had gained 22.66% in the past month. In that same time, the Consumer Discretionary sector gained 0.45%, while the S&P 500 gained 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $4.26, signifying a 13.00% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, up 8.25% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.33 per share and revenue of $8.66 billion. These totals would mark changes of +10.49% and +6.68%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.37% increase. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Ralph Lauren is currently being traded at a Forward P/E ratio of 22.03. This signifies a premium in comparison to the average Forward P/E of 15.93 for its industry.
It is also worth noting that RL currently has a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Textile – Apparel industry was having an average PEG ratio of 2.12.
The Textile – Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
