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Is Ralph Lauren (RL) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Ralph Lauren (RL) is a stock many investors are watching right now. RL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that RL has a P/B ratio of 2.34. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.42. Over the past 12 months, RL's P/B has been as high as 3.36 and as low as 2.24, with a median of 2.75.

Finally, we should also recognize that RL has a P/CF ratio of 15.71. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 38.41. Within the past 12 months, RL's P/CF has been as high as 45.72 and as low as 15.01, with a median of 21.84.

These are only a few of the key metrics included in Ralph Lauren's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RL looks like an impressive value stock at the moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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