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Will Ralph Lauren (RL) Crush Estimates at Its Next Earnings Report?

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Ralph Lauren Corporation (RL - Free Report) , a firm in the Textile - Apparel industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, RL has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, RL expected to post earnings of 79 cents per share, while it actually produced earnings of 89 cents per share, a beat of 12.7%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 96 cents per share, when it actually delivered earnings of $1.11 per share, representing 15.6% positive surprise.

Ralph Lauren Corporation Price and Consensus

Thanks in part to this history, recent estimates have been moving higher for Ralph Lauren. In fact, the Earnings ESP for IPGP is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for RL, as the firm currently has a Zacks Earnings ESP of +1.31%, so another beat could be around the corner.

This is particularly true when you consider that RL has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that RL could see another beat at its next report, especially if recent trends are any guide.

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