Ralph Lauren Corporation (NYSE:RL) is one of the stocks Jim Cramer recently shared his thoughts on. Cramer made some positive comments about the company stock, as he said:
“In a year that’s been very tricky for most apparel stocks, Ralph Lauren… has been a phenomenal winner, up 33% for 2025, trouncing the S&P 500… I recommended this thing after speaking with CEO Patrice Louvet in August of 2023… If you’re selling a winner because they promised 150 basis points of margin expansion over the three years instead of 200 basis points that you were looking for, I can’t do anything for you. What I care about is steady margin expansion, and that’s what Ralph Lauren told us we’ll get. Investors look for steady margin expansion… And two, that it’s got a moat. This one’s got a moat, and that’s something you’ve gotta think about. The rest of the longer-term guidance looks fine to me…
I’m more interested in is how Ralph Lauren believes they can hit these great numbers. Management continues to emphasize three strategic growth drivers… Putting it all together, I came away from yesterday’s investor event feeling pretty darn impressed by what Ralph Lauren’s doing. Impressed enough that I’m willing to keep recommending this stock. I like the new three-year financial targets. The numbers weren’t stunning, but they’re good enough and they’re able to be, they’re attainable. Plus, even though the stock’s had a huge run, it doesn’t feel too expensive, selling worth just over 20 times this year’s earnings estimate.
Keep in mind, any aggregate in the S&P 500 trades at almost 25 times earnings. So even though Ralph Lauren is expected to put up nearly 20% earnings growth this year, the stock still trades at a sizable discount to the broader market. Earnings growth for the S&P is just 9%. Ralph Lauren should be trading at a premium.
Bottom line: If doing the work, if you’re checking into the company’s new targets, I’m still bullish on RL. Nothing’s changed for me. I bet the stock can keep working its way higher from here. I have said it before, and I will say it again, RL is leaving the competition behind and will continue to do so.”
Pixabay/Public Domain
Ralph Lauren Corporation (NYSE:RL) designs and sells apparel, footwear, accessories, home products, and fragrances across multiple luxury and lifestyle brands.
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Disclosure: None. This article is originally published at Insider Monkey.
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