Ralph Lauren (RL) ended the recent trading session at $380.45, demonstrating a -1.97% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The stock of upscale clothing company has fallen by 6.03% in the past month, lagging the Consumer Discretionary sector's gain of 1.27% and the S&P 500's gain of 0.32%.
The upcoming earnings release of Ralph Lauren will be of great interest to investors. The company is expected to report EPS of $4.26, up 13% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 8.25% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.33 per share and a revenue of $8.66 billion, signifying shifts of +10.49% and +6.68%, respectively, from the last year.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ralph Lauren is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ralph Lauren has a Forward P/E ratio of 21.17 right now. This valuation marks a premium compared to its industry average Forward P/E of 16.56.
One should further note that RL currently holds a PEG ratio of 1.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Textile - Apparel industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 24% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Ralph Lauren Corporation (RL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).