Trade-Ideas: Ralph Lauren (RL) Is Today's Pre-Market Mover With Heavy Volume Stock

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 $176.7 million.
  • RL traded 346,031 shares today in the pre-market hours as of 9:12 AM, representing 32.7% of its average daily volume.

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More details on RL:

Ralph Lauren Corporation designs, markets, and distributes lifestyle products worldwide. The stock currently has a dividend yield of 1.1%. RL has a PE ratio of 20.0. 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 836,900 shares per day over the past 30 days. Ralph Lauren has a market cap of $9.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.42 and a short float of 1.2% with 0.59 days to cover. Shares are down 13% 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, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity 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:
  • RL's revenue growth trails the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 2.8%. 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.
  • RL's debt-to-equity ratio is very low at 0.21 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 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 ($8.50 versus $8.00).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, RALPH LAUREN CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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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