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Is Ralph Lauren (RL) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Ralph Lauren (RL - Free Report) . RL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 16.10 right now. For comparison, its industry sports an average P/E of 16.17. Over the past 52 weeks, RL's Forward P/E has been as high as 22.44 and as low as 15.60, with a median of 18.85.

We should also highlight that RL has a P/B ratio of 2.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.78. RL's P/B has been as high as 3.36 and as low as 2.20, with a median of 2.75, over the past year.

Finally, investors should note that RL has a P/CF ratio of 17.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RL's P/CF compares to its industry's average P/CF of 44.95. RL's P/CF has been as high as 45.72 and as low as 17.37, with a median of 22, all within the past year.

These are just a handful of the figures considered in Ralph Lauren's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RL is an impressive value stock right now.


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