Ralph Lauren comes back upon contact with an important technical level that might give impetus to a rebound, especially in weekly data.
From a fundamental viewpoint, the company shows positive information with an estimated P/E ratio of 19.2x for the current year, quite low for a luxury brand. Furthermore, the EV/Sales ratio is 1.87x and it confirms the low valuation. Revenues and regular operating margin growth rates add relevance to this investment.
Technically,in weekly data, the security is in a consolidation phase limited by the significant USD 161.3 support. Above the lower limit, investors could aim a rebound toward the 2013 highest point.
Investors can take a long position near the USD 159/161 area. In the first instance, the target price will be the daily resistance at USD 171. In case of breakout of this level at the closing price, the goal will be the USD 180.5. The stop loss will be set below USD 158.7.
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Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories includes casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and others. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City and RL Restaurant located in Chicago.