Key Moments
- Ralph Lauren (NYSE: RL) advanced to $369.15, gaining 1.73% and beating the S&P 500’s 0.26% rise in the latest session.
- Consensus forecasts point to quarterly EPS of $5.74 and revenue of $2.31 billion, implying year-over-year growth of 19.09% and 7.89%, respectively.
- RL carries a Zacks Rank #3 (Hold), with its consensus EPS estimate up 0.55% over the past 30 days and a Forward P/E of 23.61 versus an industry average of 16.68.
Stock Performance Versus Major Indexes
Ralph Lauren (RL) finished the latest trading session at $369.15, up 1.73% from the previous close. That advance surpassed the S&P 500, which added 0.26% on the day. The Dow climbed 0.6%, while the tech-heavy Nasdaq increased 0.25% over the same period.
Before this session, the upscale apparel company’s shares had declined 0.78%. That loss was smaller than the Consumer Discretionary sector’s 1.08% drop but trailed the S&P 500, which had gained 1.57% in the same timeframe.
Earnings Expectations and Revenue Outlook
Market participants are closely watching Ralph Lauren’s upcoming earnings release. The company is projected to report earnings per share (EPS) of $5.74 for the quarter, representing an increase of 19.09% compared with the same quarter a year earlier. The latest consensus estimate for quarterly revenue stands at $2.31 billion, signaling growth of 7.89% from the prior-year period.
On a full-year basis, the Zacks Consensus Estimates call for EPS of $15.37 and revenue of $7.77 billion. These figures would represent year-over-year changes of 24.66% for earnings and 9.76% for sales.
| Metric | Current Consensus | Year-over-Year Change |
|---|---|---|
| Quarterly EPS | $5.74 | +19.09% |
| Quarterly Revenue | $2.31 billion | +7.89% |
| Full-year EPS | $15.37 | +24.66% |
| Full-year Revenue | $7.77 billion | +9.76% |
Analyst Revisions and Zacks Rank
Investors are also monitoring movements in analyst estimates for Ralph Lauren. Changes in forecasts often reflect evolving short-term business conditions. Upward revisions typically indicate that analysts are becoming more optimistic about the company’s operations and profitability.
According to the Zacks framework, such estimate changes have been shown to correlate with near-term stock price performance. To capture this relationship, Zacks uses its proprietary Zacks Rank model, which incorporates these revisions into a rating system.
The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a documented history of outperformance, supported by external audits, with #1-ranked stocks generating an average annual return of +25% since 1988. Over the last 30 days, the consensus EPS estimate for Ralph Lauren has increased by 0.55%. The stock currently holds a Zacks Rank of #3 (Hold).
Valuation Metrics: P/E and PEG
On the valuation front, Ralph Lauren is trading at a Forward P/E ratio of 23.61. This compares to an average Forward P/E of 16.68 for its industry, suggesting that RL shares trade at a premium relative to peers based on projected earnings.
Ralph Lauren also has a PEG ratio of 1.64. This widely followed measure resembles the P/E ratio but incorporates expected earnings growth. By comparison, the Textile – Apparel industry recorded an average PEG ratio of 2.9 at the close of the last session.
| Valuation Metric | Ralph Lauren (RL) | Textile – Apparel Industry Average |
|---|---|---|
| Forward P/E | 23.61 | 16.68 |
| PEG Ratio | 1.64 | 2.9 |
Industry Context and Relative Strength
Ralph Lauren operates within the Textile – Apparel industry, a segment of the Consumer Discretionary sector. This industry currently holds a Zacks Industry Rank of 65, placing it in the top 27% of more than 250 tracked industries.
The Zacks Industry Rank evaluates the health of individual industry groups by averaging the Zacks Ranks of the component stocks. Research from Zacks indicates that industries in the top half of these rankings outperform those in the bottom half by a factor of 2 to 1.
Investors can use Zacks.com to follow these and other market-moving indicators for Ralph Lauren in upcoming trading sessions.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
