Ralph Lauren Reaches 52-week High
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Ralph Lauren Corporation
) soared to a new 52-week high of $185.09 on Tuesday, May 7,
2013. The company continues to gain from a consistent positive
earnings surprise trend, strong revenue growth, an impressive
financial position and strong valuation levels.
Average volume of shares traded over the last 3 months stands at
approximately 618K. Moreover, the stock currently trades at a
forward P/E of 19.9x, at a 26.8% premium from the peer group
average of 15.7x.
This Zacks Rank #2 (Buy) designer, marketer and distributor of
lifestyle products closed trade at $185.01 on May 7, representing
a solid year-to-date return of approximately 21.6%.
Alongside, companies like
Abercrombie & Fitch Co.
) crafted new 52-week highs of $52.54, $58.66 and $180.01,
respectively on Tuesday.
We remain impressed by the company's robust quarterly results and
efforts to capture growth opportunities. The third-quarter 2013
adjusted earnings of $2.40 per share at Ralph Lauren exhibited an
improvement of 34.8% from the comparable year-ago quarter as well
as the Zacks Consensus Estimate of $2.21. The year-over-year
increase was primarily driven by a rise in sales, improved
margins and a lower tax rate.
Looking at the earnings surprise history, the company has beaten
the Zacks Consensus Estimates in the past several quarters. The
average positive surprise in the trailing 4 quarters comes to
Bolstered by better-than-expected improvement in operating
margin, the company now expects it to rise between 75 basis
points (bps) and 100 bps, up from its earlier guidance range of
Apart from strong third-quarter results, Ralph Lauren's growth
story looks compelling. We believe that the company's sustained
focus on expanding higher growth businesses, such as the
accessories category, along with the strategic expansion of its
global operations, bode well for future growth.