Can Ralph Lauren’s Stock Rebound After A 5% Drop Last Week?

Ralph Lauren’s stock (NYSE: RL), a company engaged in the design, marketing, and distribution of premium lifestyle products, including apparel, accessories, fragrances, and home furnishings, has declined 5% over the last five trading days (one week) and currently stands at around $109. It should be noted that the broader S&P500 returned a marginal decline during the same period. Now, is RL stock poised to decline further? We believe the company remains fundamentally undervalued and there could be room for gains in the stock going forward. Specifically, there is a 54% chance of a rise for RL stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on RL Stock Chances of Rise for more details.

Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last 10 year data

[1] -4.9% or higher return during five-day period in 267 times out of 2517; Stock rose in the next 5 days in 137 of these 267 instances

[2] -5.3% or higher return during ten-day period in 438 times out of 2517; Stock rose in the next 10 days in 230 of these 438 instances

[3] -3.9% or higher return during twenty-one-day period in 695 times out of 2516; Stock rose in the next 21 days in 373 of these 695 instances

E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.

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