Ralph Lauren (RL - Free Report) closed the most recent trading day at $127.59, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily gain of 0.46%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.59%.
Coming into today, shares of the upscale clothing company had gained 4.07% in the past month. In that same time, the Consumer Discretionary sector gained 1.83%, while the S&P 500 gained 3.24%.
Wall Street will be looking for positivity from RL as it approaches its next earnings report date. The company is expected to report EPS of $0.93, up 3.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, down 4.01% from the year-ago period.
Any recent changes to analyst estimates for RL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. RL is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that RL has a Forward P/E ratio of 16.89 right now. For comparison, its industry has an average Forward P/E of 15.87, which means RL is trading at a premium to the group.
Meanwhile, RL's PEG ratio is currently 1.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.