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Are Investors Undervaluing Ralph Lauren (RL) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Ralph Lauren (RL - Free Report) . RL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.01, while its industry has an average P/E of 19.12. Over the last 12 months, RL's Forward P/E has been as high as 22.44 and as low as 13.44, with a median of 17.44.
RL is also sporting a PEG ratio of 1.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RL's industry currently sports an average PEG of 1.46. Over the past 52 weeks, RL's PEG has been as high as 2.63 and as low as 1.30, with a median of 1.75.
We should also highlight that RL has a P/B ratio of 2.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.57. Within the past 52 weeks, RL's P/B has been as high as 3.36 and as low as 2.24, with a median of 2.98.
Finally, our model also underscores that RL has a P/CF ratio of 12.90. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RL's P/CF compares to its industry's average P/CF of 28.95. Over the past 52 weeks, RL's P/CF has been as high as 25.83 and as low as 11.22, with a median of 18.70.
These are only a few of the key metrics included in Ralph Lauren's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RL looks like an impressive value stock at the moment.
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Are Investors Undervaluing Ralph Lauren (RL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Ralph Lauren (RL - Free Report) . RL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.01, while its industry has an average P/E of 19.12. Over the last 12 months, RL's Forward P/E has been as high as 22.44 and as low as 13.44, with a median of 17.44.
RL is also sporting a PEG ratio of 1.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RL's industry currently sports an average PEG of 1.46. Over the past 52 weeks, RL's PEG has been as high as 2.63 and as low as 1.30, with a median of 1.75.
We should also highlight that RL has a P/B ratio of 2.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.57. Within the past 52 weeks, RL's P/B has been as high as 3.36 and as low as 2.24, with a median of 2.98.
Finally, our model also underscores that RL has a P/CF ratio of 12.90. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RL's P/CF compares to its industry's average P/CF of 28.95. Over the past 52 weeks, RL's P/CF has been as high as 25.83 and as low as 11.22, with a median of 18.70.
These are only a few of the key metrics included in Ralph Lauren's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RL looks like an impressive value stock at the moment.