In the latest close session, Ralph Lauren (RL) was up +1.89% at $394.90. The stock outpaced the S&P 500's daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
The stock of upscale clothing company has fallen by 1.45% in the past month, lagging the Consumer Discretionary sector's gain of 0.02% and the S&P 500's gain of 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.26, showcasing a 13% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 8.25% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.33 per share and a revenue of $8.66 billion, representing changes of +10.49% and +6.68%, respectively, from the prior year.
It is also important to note the recent changes 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Ralph Lauren is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Ralph Lauren's current valuation metrics, including its Forward P/E ratio of 21.14. This valuation marks a premium compared to its industry average Forward P/E of 15.73.
Investors should also note that RL has a PEG ratio of 1.92 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry had an average PEG ratio of 2.14 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 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.
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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Ralph Lauren Corporation (RL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).