In the latest close session, Ralph Lauren (RL) was up +1.41% at $339.82. The stock's change was less than the S&P 500's daily gain of 1.49%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 2.26%.
The stock of upscale clothing company has fallen by 10.06% in the past month, lagging the Consumer Discretionary sector's loss of 7% and the S&P 500's gain of 0.1%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.21, signifying a 11.08% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.13 billion, indicating a 5.92% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.79 per share and revenue of $8.73 billion, which would represent changes of +13.26% and +7.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Ralph Lauren holds a Zacks Rank of #3 (Hold).
Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 17.84. This signifies a premium in comparison to the average Forward P/E of 14.83 for its industry.
One should further note that RL currently holds a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.87 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ralph Lauren Corporation (RL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).