A strong stock as of late has been Ralph Lauren (RL Quick QuoteRL - Free Report) . Shares have been marching higher, with the stock up 3.9% over the past month. The stock hit a new 52-week high of $311.45 in the previous session. Ralph Lauren has gained 34.7% since the start of the year compared to the 10.9% move for the Zacks Consumer Discretionary sector and the -25.3% return for the Zacks Textile - Apparel industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 7, 2025, Ralph Lauren reported EPS of $3.77 versus consensus estimate of $3.48 while it beat the consensus revenue estimate by 4.16%.

For the current fiscal year, Ralph Lauren is expected to post earnings of $14.77 per share on $7.5 in revenues. This represents a 19.79% change in EPS on a 5.98% change in revenues. For the next fiscal year, the company is expected to earn $16.08 per share on $7.87 in revenues. This represents a year-over-year change of 8.87% and 4.88%, respectively.

Valuation Metrics

Though Ralph Lauren has recently hit a 52-week high, what is next for Ralph Lauren? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Ralph Lauren has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 21.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.1X. On a trailing cash flow basis, the stock currently trades at 19X versus its peer group's average of 8.3X. Additionally, the stock has a PEG ratio of 1.57. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Ralph Lauren currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ralph Lauren passes the test. Thus, it seems as though Ralph Lauren shares could still be poised for more gains ahead.

How Does RL Stack Up to the Competition?

Shares of RL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Guess?, Inc. (GES Quick QuoteGES - Free Report) . GES has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.

Earnings were strong last quarter. Guess?, Inc. beat our consensus estimate by 85.71%, and for the current fiscal year, GES is expected to post earnings of $1.60 per share on revenue of $3.2 billion.

Shares of Guess?, Inc. have gained 30.4% over the past month, and currently trade at a forward P/E of 10.58X and a P/CF of 4.89X.

The Textile - Apparel industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for RL and GES, even beyond their own solid fundamental situation.