The company is active under
Consumer Cyclical sector as part of
Apparel Manufacturing industry.
Macroaxis provides advice on Ralph Lauren Corp to complement and cross-verify current
analyst consensus on Ralph Lauren Corp. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Ralph Lauren, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Ralph Lauren along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Ralph Lauren's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ralph Lauren. Your research has to be compared to or analyzed against Ralph Lauren's peers to derive any actionable benefits. When done correctly, Ralph Lauren's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Ralph Lauren Corp.
How important is Ralph Lauren's Liquidity
Ralph Lauren
financial leverage refers to using borrowed capital as a funding source to finance Ralph Lauren Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ralph Lauren financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ralph Lauren's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ralph Lauren's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Ralph Lauren's total debt and its cash.
Ralph Lauren Gross Profit
Ralph Lauren Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ralph Lauren previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ralph Lauren Gross Profit growth over the last 10 years. Please check Ralph Lauren's
gross profit and other
fundamental indicators for more details.
Ralph Lauren Correlation with Peers
Investors in Ralph can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ralph Lauren Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ralph Lauren and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ralph is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Ralph for more details
An Additional Perspective On Ralph Lauren Corp
Ralph Lauren Corp maintains Sharpe Ratio (i.e., Efficiency) of -0.14, which implies the firm had -0.14% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Ralph Lauren Corp exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check Ralph Lauren Corp
coefficient of variation of
(769.52), and Risk Adjusted Performance of
(0.17) to confirm the risk estimate we provide.
Are Ralph Lauren technical ratios showing a bounce-back?
Coefficient Of Variation just dropped to -769.52, may denote upcoming price decline. Ralph Lauren Corp exhibits very low volatility with skewness of -0.58 and kurtosis of 1.51. However, we advise investors to further study Ralph Lauren Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ralph Lauren's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ralph Lauren's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Ralph Lauren Implied Volatility
Ralph Lauren's implied volatility exposes the market's sentiment of Ralph Lauren Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ralph Lauren's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ralph Lauren stock will not fluctuate a lot when Ralph Lauren's options are near their expiration.
Our Conclusion on Ralph Lauren
While many other companies in the apparel manufacturing industry are either recovering or due for a correction, Ralph may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 24th of May 2022, our analysis shows that Ralph Lauren actively responds to the market. The company is
undervalued and projects
below average odds of financial turmoil for the next 2 years. Our primary 90 days buy-hold-sell advice on the company is
Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ralph Lauren Corp. Please refer to our
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