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Ralph Lauren Corporation (RL) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Ralph Lauren (RL - Free Report) ? Shares have been on the move with the stock up 0.5% over the past month. The stock hit a new 52-week high of $322.64 in the previous session. Ralph Lauren has gained 39.6% since the start of the year compared to the 9.1% move for the Zacks Consumer Discretionary sector and the -26% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive 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 $14.8 per share on $7.51 in revenues. This represents a 20.03% change in EPS on a 6.06% change in revenues. For the next fiscal year, the company is expected to earn $16.13 per share on $7.87 in revenues. This represents a year-over-year change of 8.99% and 4.89%, respectively.
Valuation Metrics
While Ralph Lauren has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 21.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.6X. On a trailing cash flow basis, the stock currently trades at 19.7X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 1.63. 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 consider the stock's Zacks Rank, 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 favorable earnings estimate revisions from covering analysts.
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 have a bit more room to run in the near term.
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 Vince Holding Corp. (VNCE - Free Report) . VNCE has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Vince Holding Corp. beat our consensus estimate by 575.00%, and for the current fiscal year, VNCE is expected to post earnings of $0.60 per share on revenue of $294.64 million.
Shares of Vince Holding Corp. have gained 102.5% over the past month, and currently trade at a forward P/E of 5.2X and a P/CF of 1.02X.
The Textile - Apparel industry may rank in the bottom 87% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for RL and VNCE, even beyond their own solid fundamental situation.
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Ralph Lauren Corporation (RL) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Ralph Lauren (RL - Free Report) ? Shares have been on the move with the stock up 0.5% over the past month. The stock hit a new 52-week high of $322.64 in the previous session. Ralph Lauren has gained 39.6% since the start of the year compared to the 9.1% move for the Zacks Consumer Discretionary sector and the -26% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive 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 $14.8 per share on $7.51 in revenues. This represents a 20.03% change in EPS on a 6.06% change in revenues. For the next fiscal year, the company is expected to earn $16.13 per share on $7.87 in revenues. This represents a year-over-year change of 8.99% and 4.89%, respectively.
Valuation Metrics
While Ralph Lauren has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 21.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.6X. On a trailing cash flow basis, the stock currently trades at 19.7X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 1.63. 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 consider the stock's Zacks Rank, 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 favorable earnings estimate revisions from covering analysts.
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 have a bit more room to run in the near term.
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 Vince Holding Corp. (VNCE - Free Report) . VNCE has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Vince Holding Corp. beat our consensus estimate by 575.00%, and for the current fiscal year, VNCE is expected to post earnings of $0.60 per share on revenue of $294.64 million.
Shares of Vince Holding Corp. have gained 102.5% over the past month, and currently trade at a forward P/E of 5.2X and a P/CF of 1.02X.
The Textile - Apparel industry may rank in the bottom 87% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for RL and VNCE, even beyond their own solid fundamental situation.