Ralph Lauren: Valuation Improving After The Drop
Summary
- Ralph Lauren is one of the worst-performing retail names this year, up just 3% vs. a 30% return for the Retail Sector.
- The company reported 26% revenue growth in its most recent quarter, and owned digital commerce growth of 35%, with digital margins being accretive to company margins.
- At a current share price of $108.00, its valuation is becoming more reasonable, with the stock trading at just 13x FY2023 earnings estimates vs. a historical multiple of 17.
- So, while I don't see the stock as a buy just yet, I would view pullbacks below $100.00 as buying opportunities from a swing-trading standpoint.
Taylor Dart is an individual investor with over 16 years of trading experience, with his primary focus being precious metals developers, producers and royalty/streaming companies.
Taylor leads the investing group Alluvial Gold Research, where he offers portfolios with entry/exit points, Buy/Sell alerts, and proprietary sentiment indicators for gold and silver miners. Learn more.
- Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.
Given the volatility in the precious metals sector, position sizing is critical, so when buying precious metals stocks, position sizes should be limited to 5% or less of one's portfolio.
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