Ralph Lauren (RL) closed the most recent trading day at $306.12, moving -2.71% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
The stock of upscale clothing company has risen by 10.27% in the past month, leading the Consumer Discretionary sector's gain of 1.05% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.28, signifying a 29.13% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.87 billion, up 8.15% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.77 per share and a revenue of $7.5 billion, signifying shifts of +19.79% and +5.98%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Ralph Lauren. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Ralph Lauren holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Ralph Lauren is currently being traded at a Forward P/E ratio of 21.31. For comparison, its industry has an average Forward P/E of 15.77, which means Ralph Lauren is trading at a premium to the group.
Meanwhile, RL's PEG ratio is currently 1.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel industry currently had an average PEG ratio of 2.37 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
