Ralph Lauren's Strong EPS Growth and Revenue Growth Make it an Attractive Investment Opportunity

Ralph Lauren's EPS growth has been 15% per year over the last three years, with revenue growth of 6.8% to $7.1b. The company's EBIT margins remained unchanged, but its revenue growth is progress. Insiders own 32% of the business, giving them significant influence and reason to generate value for shareholders.

Ralph Lauren (RL) has been a standout performer in the fashion industry, with its earnings per share (EPS) growth consistently exceeding the market average over the past three years. The company's EPS has grown by 15% annually, while its revenue has increased by 6.8% to reach $7.1 billion. Despite the stable earnings before interest and taxes (EBIT) margins, the company's revenue growth indicates progress and potential for future expansion.

Analysts and investors alike are closely monitoring Ralph Lauren's upcoming earnings disclosure. The company is predicted to post an EPS of $3.4, indicating a 25.93% growth compared to the equivalent quarter last year. Additionally, the consensus estimate predicts the revenue to be $1.64 billion, indicating an 8.27% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $13.63 per share and a revenue of $7.31 billion, demonstrating changes of +10.54% and +3.23%, respectively, from the preceding year [1].

Ralph Lauren's performance has not only been driven by its financial metrics but also by its valuation. The company currently has a Forward P/E ratio of 20.14, which is higher than the industry average of 14.34. However, this premium valuation is justified by the company's strong earnings growth prospects. The PEG ratio of 2.09 also indicates that investors are willing to pay a higher price for the company's expected earnings growth [1].

The insider ownership of 32% in Ralph Lauren provides significant influence and a strong incentive for insiders to generate value for shareholders. This high level of insider ownership is often seen as a positive signal of the company's long-term prospects and commitment to shareholder value [1].

In conclusion, Ralph Lauren's financial performance over the past three years has been impressive, with strong EPS and revenue growth. The company's valuation metrics and insider ownership suggest a positive outlook for the future. Investors and financial professionals should continue to monitor Ralph Lauren's performance and upcoming earnings disclosure to stay informed about its growth prospects.

References:

[1] https://finance.yahoo.com/news/why-ralph-lauren-rl-outpaced-221504876.html