Ralph Lauren Shares Soar 1.14% on Bullish Analysts, Earnings

Ralph Lauren (RL) shares surged 1.14% today, marking the second consecutive day of gains, with a total increase of 3.18% over the past two days. The stock price reached its highest level since February 2025, despite an intraday decline of NaN%.

The strategy of buying RL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized return. However, the Sharpe ratio was relatively low at 0.81, indicating that the risk-adjusted returns were acceptable but not outstanding. The strategy showed a maximum drawdown of -11.58% during the 2020 COVID-19 market crash, which was a significant risk. Overall, while the strategy provided some gains, it may not have been the most optimal approach, especially considering the significant volatility experienced during market downturns.

Analysts have shown a bullish outlook on Ralph Lauren, with several firms raising their price targets and maintaining positive ratings. UBS Group increased their price target from $300.00 to $335.00 and assigned a “buy” rating. Telsey Advisory Group reiterated their “outperform” rating with a price target of $315.00. Additionally, Jefferies Financial Group and Guggenheim have also boosted their price targets earlier this year, indicating a strong consensus among analysts regarding the company's prospects.

Ralph Lauren's recent earnings report, released on February 6, 2025, was well-received by the market, leading to a 10.66% surge in share price. The positive earnings call highlighted the company's strong financial performance and growth potential, further bolstering investor confidence.

In addition to analyst upgrades and a strong earnings report, Ralph Lauren's product strategy is also contributing to its stock price momentum. The reintroduction of the RL888 stainless steel timepieces, available starting April 2025, is expected to generate consumer interest and drive sales, potentially leading to further gains in the company's stock price.