Should I add Ralph Lauren stock to my portfolio?

[Nick Robinson]

[Ilija Rankovic]

Whether a stock is a good addition to the portfolio or not can only be determined by the person in charge of managing that portfolio. However, we can take a look at some numbers and see how the company is doing compared to its own recent history and in comparison to its peers.

Ralph Lauren’s (NYSE:RL) twelve-month price-to-earnings ratio is currently 15.81, which is a better figure than the S&P 500’s ratio of 18.28 and the industry’s ratio of 21.82. This favourable comparison indicates undervalued trading compared to its peers. Ralph Lauren currently has a price-to-sales ratio of 1.44. This figure is lower than the S&P 500 average of 3.3. The comparison to the S&P ratio and to the historical ratio values of the stock shows that shares are trading undervalued at the moment, at least compared to its historical values. One more thing to note is that the current price-to-sales values are well below its historical highs.

Analysts rate the company with a Zacks Value Score of B and a Zacks Rank #3 (Hold), which are not bad rankings by any means.