Ralph Lauren (RL) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
A strong stock as of late has been Ralph Lauren $RL (RL). Shares have been marching higher, with the stock up 14.9% over the past month. The stock hit a new 52-week high of $391.12 in the previous session. Ralph Lauren has gained 10.2% since the start of the year compared to the -2.8% move for the Zacks Consumer Discretionary sector and the 0.1% return for the Zacks Textile - Apparel industry.
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 5, 2026, Ralph Lauren reported EPS of $6.22 versus consensus estimate of $5.8.
For the current fiscal year, Ralph Lauren is expected to post earnings of $18.03 per share on $7.96 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $19.75 per share on $8.48 in revenues. This represents a year-over-year change of 10.99% and 6.53%, respectively.
Though Ralph Lauren has recently hit a 52-week high, what is next for Ralph Lauren? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ralph Lauren has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.5X. On a trailing cash flow basis, the stock currently trades at 23.8X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 1.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ralph Lauren currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ralph Lauren fits the bill. Thus, it seems as though Ralph Lauren shares could have a bit more room to run in the near term.
Shares of RL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kontoor Brands, Inc. (KTB). KTB has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Kontoor Brands, Inc. beat our consensus estimate by 4.85%, and for the current fiscal year, KTB is expected to post earnings of $6.46 per share on revenue of $3.44 billion.
Shares of Kontoor Brands, Inc. have gained 12% over the past month, and currently trade at a forward P/E of 12.11X and a P/CF of 12.03X.
The Textile - Apparel industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for RL and KTB, even beyond their own solid fundamental situation.
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
