The most recent trading session ended with Ralph Lauren (RL – Free Report) 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.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
