Ralph Lauren (RL – Free Report) 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.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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