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%.
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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.
