Ralph Lauren Corporation is an American fashion and lifestyle brand that designs and distributes its products across North America, Asia, Europe, and other countries. Founded by Ralph Lauren in 1967, the company has been consistently creating an American lifestyle, and its brands have become synonymous with high-quality apparel and high-end fashion internationally. The company offers clothing of a wide range for men, women, and children, including fashion accessories and footwear. The company has various brands like Ralph Lauren Purple Labe, Ralph Laurel Collection, Polo Ralph Lauren, and many more. Consequently, investors show much interest in Ralph Lauren stock as they explore if it is worth buying its stocks in 2022.
Is it Reasonable to Buy Ralph Lauren Stock?
Investors pick up leads from the forecasts of various experts of the stock markets like Wall Street analysts, CNN Business, and many other websites to understand which way stocks are going. According to a dozen Wall Street analysts, Ralph Lauren’s (NYSE: RL) shares are currently good to buy. The analysts’ recommendations vary from strong to moderate, as 6 agree that investors can think about buying RL stock. The remaining 6 analysts feel that holding on to the stocks would be a good strategy. However, none of them suggest selling the stocks.
RL Earnings and Revenue Growth Forecast for 2023-24
The company’s earnings growth forecast for 2023-24 is 7.9% against the US Apparel Manufacturing Industry average of 4.01%. However, it is below the average US market’s earnings growth forecast of 15.48%. Against the company’s projected earnings of $600 million in 2022, Wall Street analysts expect that in 2023 the earnings would vary between $566 and $598 million.
The forecast for PL’s revenue growth for 2023-24 is 431% against the industry average of 5.23% and the US market average of 8.87%. The company’s revenue in 2022 is likely to be $6.22 billion, but the average revenue forecast, according to Wall Street analysts, would be $4.51 billion.
Stock Price Forecast
Currently, Ralph Lauren’s stock price is $97.38, and 16 CNN Business analysts forecast that the price could vary between $78 and $145 for the coming 12-month period. It translates into a median price of 110.45, meaning that the average gain compared to the current stock price would be 13.42%.
Since June, the analysts had recommended Ralph stocks as Hold, a stand they are sticking to in July.
Lauren Ralph Increases Dividends
With a market cap of $6.8 billion, the company expects to achieve earnings growth of 3.01 % over the next five years, and the revenue growth should be around 41.30% during the same period. That the company cares for its shareholders is evident from the announcement on July 15 declaring a quarterly dividend of $0.75 per share. It shows an increased return for investors as the previous quarterly dividend was $0.69.
By all indications, there’s a bullish trend in Ralph Lauren stock, and whether to hold or buy depends on the investors’ perception of the stock.
