Ralph Lauren (RL) closed the most recent trading day at $335.23, moving -1.82% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
The stock of upscale clothing company has fallen by 9.99% in the past month, lagging the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 1.99%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.21, indicating a 11.08% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 5.92% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.79 per share and revenue of $8.73 billion. These totals would mark changes of +13.26% and +7.55%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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, the Zacks Consensus EPS estimate has remained steady. Currently, Ralph Lauren is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Ralph Lauren is presently being traded at a Forward P/E ratio of 18.17. This represents a premium compared to its industry average Forward P/E of 15.42.
We can additionally observe that RL currently boasts a PEG ratio of 1.28. 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. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.91.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Ralph Lauren Corporation (RL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).