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Why Ralph Lauren (RL) Outpaced the Stock Market Today

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Ralph Lauren (RL - Free Report) closed at $301.72 in the latest trading session, marking a +1.17% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.

Prior to today's trading, shares of the upscale clothing company had gained 7.92% outpaced the Consumer Discretionary sector's gain of 2.32% and the S&P 500's gain of 4.93%.

Market participants will be closely following the financial results of Ralph Lauren in its upcoming release. The company plans to announce its earnings on August 7, 2025. The company is forecasted to report an EPS of $3.43, showcasing a 27.04% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.64 billion, indicating a 8.71% growth compared to the corresponding quarter of the prior year.

RL's full-year Zacks Consensus Estimates are calling for earnings of $13.74 per share and revenue of $7.35 billion. These results would represent year-over-year changes of +11.44% and +3.76%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Ralph Lauren is currently trading at a Forward P/E ratio of 21.71. This represents a premium compared to its industry average Forward P/E of 15.11.

It is also worth noting that RL currently has a PEG ratio of 2.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 2.04.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 18% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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