Ralph Lauren (RL - Free Report) closed the most recent trading day at $126.56, moving +0.08% from the previous trading session. This move outpaced the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the upscale clothing company had gained 3.93% in the past month. In that same time, the Consumer Discretionary sector gained 4.09%, while the S&P 500 gained 5.49%.
Investors will be hoping for strength from RL as it approaches its next earnings release. In that report, analysts expect RL to post earnings of $0.93 per share. This would mark year-over-year growth of 3.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, down 4.01% from the year-ago period.
Investors should also note any recent changes to analyst estimates for RL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. RL currently has a Zacks Rank of #2 (Buy).
Investors should also note RL's current valuation metrics, including its Forward P/E ratio of 16.64. Its industry sports an average Forward P/E of 15.41, so we one might conclude that RL is trading at a premium comparatively.
We can also see that RL currently has a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.