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The most recent trading session ended with Ralph Lauren (RL) standing at $197.62, reflecting a -0.14% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 5.98% for the day. Meanwhile, the Dow experienced a drop of 5.5%, and the technology-dominated Nasdaq saw a decrease of 5.82%.
Prior to today's trading, shares of the upscale clothing company had lost 16.97% over the past month. This has lagged the Consumer Discretionary sector's loss of 15.75% and the S&P 500's loss of 7.66% in that time.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.94, marking a 13.45% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 3.67% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for Ralph Lauren. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ralph Lauren is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Ralph Lauren's current valuation metrics, including its Forward P/E ratio of 14.53. This denotes a premium relative to the industry's average Forward P/E of 11.73.
One should further note that RL currently holds a PEG ratio of 1.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Textile - Apparel industry stood at 1.51 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.