Ralph Lauren (RL) Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ralph Lauren as such a stock due to the following factors:
- RL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.6 million.
- RL has traded 337,483 shares today.
- RL is trading at 10.80 times the normal volume for the stock at this time of day.
- RL is trading at a new low 6.10% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on RL:
Ralph Lauren Corporation designs, markets, and distributes lifestyle products worldwide. The company operates in three segments: Wholesale, Retail, and Licensing. The stock currently has a dividend yield of 2.2%. RL has a PE ratio of 16. Currently there are 2 analysts that rate Ralph Lauren a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Ralph Lauren has been 968,000 shares per day over the past 30 days. Ralph Lauren has a market cap of $7.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.62 and a short float of 7% with 4.24 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Ralph Lauren as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- RL's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RL has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for RALPH LAUREN CORP is rather high; currently it is at 56.73%. Regardless of RL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.73% trails the industry average.
- RALPH LAUREN CORP's earnings per share declined by 36.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, RALPH LAUREN CORP reported lower earnings of $7.87 versus $8.42 in the prior year. For the next year, the market is expecting a contraction of 19.9% in earnings ($6.30 versus $7.87).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 39.1% when compared to the same quarter one year ago, falling from $215.00 million to $131.00 million.
- You can view the full Ralph Lauren Ratings Report.
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