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Ralph Lauren (RL) Declines More Than Market: Some Information for Investors

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Ralph Lauren (RL - Free Report) closed at $377.40 in the latest trading session, marking a -1.19% move from the prior day. This move lagged the S&P 500's daily loss of 0.52%. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 0.21%.

The upscale clothing company's shares have seen an increase of 8.55% over the last month, surpassing the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.

The investment community will be paying close attention to the earnings performance of Ralph Lauren in its upcoming release. The company is slated to reveal its earnings on November 5, 2026. The company is forecasted to report an EPS of $4.22, showcasing a 11.35% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 6.06% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $18.79 per share and revenue of $8.73 billion, which would represent changes of +13.26% and +7.58%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 20.33. This indicates a premium in contrast to its industry's Forward P/E of 16.76.

It's also important to note that RL currently trades at a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.94 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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