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Ralph Lauren (RL) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Ralph Lauren (RL - Free Report) reached $159.25, with a -1.02% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 1.15%.

Prior to today's trading, shares of the upscale clothing company had lost 12.71% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.55% and the S&P 500's loss of 1.09% in that time.

The investment community will be paying close attention to the earnings performance of Ralph Lauren in its upcoming release. On that day, Ralph Lauren is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 81.11%. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, up 0.76% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.31% higher. Currently, Ralph Lauren is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Ralph Lauren is presently being traded at a Forward P/E ratio of 14.32. This valuation marks a premium compared to its industry's average Forward P/E of 11.19.

Investors should also note that RL has a PEG ratio of 0.94 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Textile - Apparel industry stood at 1.4 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 206, placing it within the bottom 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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