Heavy Volume And Pre-Market Movement For Ralph Lauren (RL)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Ralph Lauren ( RL) as a pre-market mover with heavy 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 $134.4 million.
  • RL traded 216,860 shares today in the pre-market hours as of 8:46 AM, representing 28.2% of its average daily volume.

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More details on RL:

Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. The stock currently has a dividend yield of 0.9%. RL has a PE ratio of 21.3. Currently there are 7 analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Ralph Lauren has been 830,700 shares per day over the past 30 days. Ralph Lauren has a market cap of $10.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.21 and a short float of 1.9% with 1.31 days to cover. Shares are up 12.6% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ralph Lauren as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in stock price during the past year, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RALPH LAUREN CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RALPH LAUREN CORP increased its bottom line by earning $8.00 versus $7.13 in the prior year. This year, the market expects an improvement in earnings ($8.70 versus $8.00).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has slightly increased to $295.00 million or 9.78% when compared to the same quarter last year. Despite an increase in cash flow, RALPH LAUREN CORP's average is still marginally south of the industry average growth rate of 17.24%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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