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Is Ralph Lauren (RL) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks Equity Research
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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Ralph Lauren (RL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of RL and the rest of the Consumer Discretionary group's stocks.

Ralph Lauren is a member of our Consumer Discretionary group, which includes 251 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. RL is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for RL's full-year earnings has moved 3.58% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, RL has moved about 17.47% on a year-to-date basis. At the same time, Consumer Discretionary stocks have gained an average of 14.79%. This means that Ralph Lauren is performing better than its sector in terms of year-to-date returns.

Looking more specifically, RL belongs to the Textile - Apparel industry, which includes 22 individual stocks and currently sits at #90 in the Zacks Industry Rank. Stocks in this group have gained about 20.23% so far this year, so RL is slightly underperforming its industry this group in terms of year-to-date returns.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to RL as it looks to continue its solid performance.


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