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Ralph Lauren (RL) closed at $243.05 in the latest trading session, marking a +0.22% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the upscale clothing company have appreciated by 6.63% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 6.01% and the S&P 500's loss of 2.8%.
Market participants will be closely following the financial results of Ralph Lauren in its upcoming release. It is anticipated that the company will report an EPS of $4.47, marking a 7.19% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 4.37% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.74 per share and revenue of $6.87 billion. These totals would mark changes of +13.87% and +3.59%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Ralph Lauren. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. As of now, Ralph Lauren holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Ralph Lauren is holding a Forward P/E ratio of 20.67. This expresses a premium compared to the average Forward P/E of 16.06 of its industry.
It's also important to note that RL currently trades at a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.92.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.