On Feb-1-2007, Department-store operator J.C. Penney Co (NYSE: JCP, stock) started offering a new brand called American Living (created by Polo Ralph Lauren’s Global Brand Concepts) that includes merchandise, intimate apparel, accessories and home products exclusively.

Thomas Weisel Partners LLC analyst, Liz Dunn has a target of $90 on Ralph Lauren saying there’s room for significant growth ahead. “Mad” Jim Cramer has a strong take on Ralph Lauren stating consumer is strong with tax-cuts benefits which will translate to spending.

Rating Indicators for RL:

• Wall Street consensus : 0.92
• StockScouter rating : 7 / 10
• Whisper Number for this stock : N/A
• Schaeffer rating for this stock : 6 / 10
• Power Rating : 5 / 10
• Insider Trading (last 52 weeks) : ($60.10M)
• Zacks Analysts Rating: Moderate Buy
• Option Trading: Apr 2007 80 Call
• Implied Volatility (IV) for Mar 2007 $80 Strike : 30.75%

Sales, Income & Growth – For the past 12-months, Ralph Lauren registered $4.09 Billion sales versus the industry’s $2.97 Billion. Income amounted to $370.30 Million against the industry’s $211.55 Million. While Ralph Lauren 12-months sales growth is at 19.20%, the income growth is in the region of 40.20% (the same industry sector sales growth is at 12.60% and income growth of 28.80%).

Profitability & Financial Health – For the past 12-months, net profit margin is in the region of 9.1%. Ralph Lauren has a debt/equity ratio of 0.13 compare to industry’s ratio of 1.85.

Stock Resistance & Support Level – The resistance is at 85.00 (52-week high) while the first level support is at 79.87 (50-day moving average).

Risks – The ratio of Ralph Lauren’s price-to-earnings multiple to its five-year growth rate is above the average level.

Estee Lauder Companies Inc. (NYSE: EL, stock) beats earning and make me money when it said fiscal second-quarter profit more than doubled on higher sales recently. Gauging from earning performance of Estee Lauder, I would think Ralph Lauren would performs equally well – at least both are in the same industry.

Other Articles That May Interest You …

• Ready To Take Money Off The Table – CAT, ILMN, EL, MAT

Tweet

February 6th, 2007 by financetwitter

If you enjoyed this post, what shall you do next? Consider: