In the latest close session, Ralph Lauren (RL) was up +1.93% at $279.81. This change outpaced the S&P 500's 0.83% gain on the day. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.02%.
The upscale clothing company's shares have seen a decrease of 1.2% over the last month, not keeping up with the Consumer Discretionary sector's gain of 7.03% and the S&P 500's gain of 4.99%.
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Analysts and investors alike will be keeping a close eye on 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 latest consensus estimate predicts the revenue to be $1.64 billion, indicating a 8.27% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.63 per share and a revenue of $7.31 billion, demonstrating changes of +10.54% and +3.23%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ralph Lauren. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% downward. At present, Ralph Lauren boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 20.14. Its industry sports an average Forward P/E of 14.34, so one might conclude that Ralph Lauren is trading at a premium comparatively.
Investors should also note that RL has a PEG ratio of 2.09 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Textile – Apparel stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Textile – Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 18% of all 250+ industries.
