Core Insights - The American Century U.S. Quality Growth ETF (QGRO) has made significant adjustments to its holdings, reflecting the flexibility of ETF managers in response to market movements [1][3][6] Fund Overview - QGRO was launched in September 2018 and charges 29 basis points for investing in U.S. firms with high growth potential and strong fundamentals [2] - The fund tracks the American Century U.S. Quality Growth Index, which screens for factors like income and quality using metrics such as cash flow and profitability [2] Recent Changes in Holdings - Notable changes in QGRO's portfolio include the dropping of at least two stocks and the addition of two new stocks, along with adjustments to the weights of six existing stocks [3] - Major tech companies such as Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) saw their weights decrease by 1.22%, 1.32%, and 1.74% respectively between November 21 and 24 [3] - Conversely, Amphenol Corporation (APH), Ralph Lauren Corporation (RL), and Expedia Group, Inc. (EXPE) experienced weight increases of 3.53%, 2.1%, and 1.33% respectively [4] Specific Stock Adjustments - The two stocks that were dropped from QGRO included Itron Inc. (ITRI) and Booz Allen Hamilton Holding Corporation (BAH), which had weights of 0.76% and 0.72% respectively before being removed [5] - The largest additions to the fund were Cardinal Health, Inc. (CAH) and HCA Healthcare, Inc. (HCA), with weights of 1.08% and 1.25% respectively [5] Performance Metrics - QGRO has achieved a year-to-date return of 12.4%, focusing on quality and growth-oriented companies [6] - The recent reduction in weight for three major tech stocks may attract investors looking to diversify into other rising companies [6]

Core Viewpoint - The article discusses the rise of parody brands and their appeal among young consumers, highlighting the tension between imitation and originality in the fashion industry [4][12][29]. Group 1: Brand Imitation and Consumer Behavior - The emergence of parody brands like "始祖马" (Ancestor Horse) and "始祖猫" (Ancestor Cat) reflects a trend where consumers seek to challenge traditional luxury brands by embracing humorous and abstract imitations [7][12]. - Young consumers are increasingly drawn to these parody products as a form of self-expression and to critique blind adherence to mainstream trends [12][29]. - The popularity of these parody items is partly driven by the high visibility and desirability of original luxury brands, such as Ralph Lauren, which reported a 17% increase in net income to $2 billion for Q2 of FY2026 [24]. Group 2: Market Dynamics and Economic Factors - The global economic instability has led to a shift in consumer preferences towards cost-effective options, with 53.6% of consumers perceiving current prices as "high" [28]. - The consumer sentiment report indicates a decline in the consumption willingness index, suggesting a growing market for affordable yet appealing products [28]. - The luxury market is being redefined by younger consumers who prioritize personalization, cultural identity, and sustainability over mere brand recognition [29]. Group 3: Legal Implications and Brand Protection - The rise of parody brands poses potential legal challenges regarding intellectual property rights, as seen in Ralph Lauren's ongoing litigation against counterfeiters [36][38]. - The recent court ruling affirmed Ralph Lauren's "POLO" trademark as a well-known brand, leading to significant penalties for infringers [38]. - The article warns that while parody brands may achieve short-term success, they risk legal repercussions and consumer abandonment without original creative backing [38].

Core Insights - Ralph Lauren Corporation (RL) is a leading luxury lifestyle brand with a market capitalization of $20.1 billion, offering a diverse range of products including clothing, footwear, accessories, and home furnishings [1] Performance Overview - RL shares have significantly outperformed the broader market, gaining 61.7% over the past year compared to the S&P 500 Index's 10.5% increase [2] - Year-to-date (YTD) performance shows RL stock up 41.6%, while the S&P 500 has risen 11.2% [2] - Compared to the Kraneshares Global Luxury Index ETF (KLXY), which gained 14.3% over the past year, RL's YTD returns also exceed the ETF's 6.2% [3] Financial Results - In Q2, RL reported an adjusted EPS of $3.79, exceeding Wall Street's expectation of $3.45, and revenue of $2 billion, surpassing the forecast of $1.9 billion [4] - Analysts project RL's EPS to grow by 25% to $15.41 for the current fiscal year ending in December [4] - RL has consistently beaten consensus estimates in the last four quarters [4] Analyst Ratings - Among 18 analysts covering RL, the consensus rating is a "Strong Buy," with 14 "Strong Buy" ratings, one "Moderate Buy," and three "Holds" [5] - The current analyst sentiment is more bullish than two months ago, with an increase in "Strong Buy" recommendations [6] - Jefferies Financial Group analyst set a price target of $385, indicating a potential upside of 17.8%, while the mean price target is $376.44, representing a 15.1% premium [6]

Core Viewpoint - Adtalem Global Education (ATGE) has been outperforming the Consumer Discretionary sector in 2023, with a year-to-date return of approximately 5.4%, while the sector has seen an average loss of 14.7% [4]. Company Performance - Adtalem Global Education is ranked 12 in the Zacks Sector Rank among 265 companies in the Consumer Discretionary group [2]. - The Zacks Rank for ATGE is currently 2 (Buy), indicating a positive earnings outlook [3]. - The Zacks Consensus Estimate for ATGE's full-year earnings has increased by 1.2% over the past quarter, reflecting improved analyst sentiment [4]. Industry Comparison - Adtalem Global Education belongs to the Schools industry, which is ranked 70 in the Zacks Industry Rank. This industry has experienced an average loss of 2.7% this year, indicating that ATGE is performing better than its peers [6]. - In contrast, Ralph Lauren, another stock in the Consumer Discretionary sector, has a year-to-date return of 42.1% and belongs to the Textile - Apparel industry, which is ranked 88 and has declined by 18.8% this year [5][6]. Future Outlook - Investors interested in Consumer Discretionary stocks should monitor Adtalem Global Education and Ralph Lauren, as both companies are expected to maintain their strong performance [7].

Stocks our strategists feel are poised to deliver positive returns are featured now in their top stock picks of the week. Hi everyone, welcome to top stock picks of the week. I'm Nina Mishra.I'll share my top stock pick first and I'll then be joined by my colleague Brian Bolan who will be talking about Nvidia, the most important company in the world which is reporting today. Oh sorry this week. Uh my pick is not as exciting as Nvidia but still an important company.So my top stock pick today is Ralph Lauren ...

Core Insights - Ralph Lauren Corporation's "Next Great Chapter: Drive" strategy focuses on brand elevation and global expansion through three pillars: elevating the lifestyle brand, driving core and high-potential categories, and winning in key cities [1] Financial Performance - In Q2 fiscal 2026, revenues increased by 14% year over year to $2.01 billion, with strong growth across North America, Europe, and Asia [2][9] - The company's growth model emphasizes premium storytelling and higher-quality, full-price sales, reducing reliance on promotions [2] Consumer Engagement - The brand's marketing efforts, including campaigns at major events like Wimbledon and the U.S. Open, generated billions of impressions and attracted 1.5 million new customers [3] - Integration of AI-powered personalization tools, such as "Ask Ralph," enhances digital engagement and conversion rates [3] Operational Efficiency - Strategic supply chain diversification and cost management have supported margin expansion despite inflation and tariffs [4] - A strong balance sheet and disciplined expense control position the company to capture further market share in the premium and luxury lifestyle market [4] Stock Performance - Ralph Lauren's shares have increased by 47.3% year to date, outperforming the industry's decline of 19.3% [5] - The company trades at a forward price-to-earnings ratio of 21.0X, compared to the industry average of 15.74X [7]

Group 1 - Ralph Lauren Corporation (NYSE:RL) was highlighted in a discussion about the retail industry and consumer spending, particularly in relation to luxury goods [2][3] - The company raised its full-year revenue guidance growth to a 6% midpoint and exceeded analyst revenue and EPS estimates in its second-quarter results [2] - Jim Cramer expressed admiration for Ralph Lauren, noting the company's high-end products, including a $300,000 watch, which indicates strong consumer interest, especially from affluent customers [3] Group 2 - The discussion also referenced Tapestry's earnings report, which saw a decline in shares despite beating revenue and earnings expectations, contrasting with Ralph Lauren's positive performance [2] - The overall sentiment suggests that while Ralph Lauren shows promise, there are other AI stocks that may offer higher returns with limited downside risk [3]

Core Viewpoint - Goldman Sachs raised the target price for Ralph Lauren from $356 to $376 while maintaining a "Buy" rating [1] Group 1 - The target price adjustment reflects a positive outlook on Ralph Lauren's performance [1] - The "Buy" rating indicates confidence in the company's growth potential and market position [1]

Core Insights - Ralph Lauren reported a 16.5% year-over-year revenue increase to $2.01 billion for Q2 of fiscal year 2026, with net profit rising 40% to $208 million [1] - All regions experienced double-digit growth, with Asia and Europe showing the most significant increases of 17% and 22% to $446 million and $688.3 million, respectively; North America saw a revenue growth of 12.6% to $832 million [1] - The company added 1.5 million consumers through its Direct-to-Consumer (DTC) channel, with average retail sales in DTC growing by 12% [1] - Core business achieved double-digit growth, driven by strong sales of wool knitwear, cashmere sweaters, cotton sweaters, linen shirts, and seasonal Oxford shirts [1] - Due to the strong performance, the company raised its fiscal year 2026 revenue forecast, now expecting an annual growth of 5% to 7% [1]

Core Insights - Ralph Lauren Corporation (RL) reported strong second-quarter fiscal 2026 results, with both revenue and earnings exceeding expectations and showing year-over-year growth, highlighting the company's brand strength and strategic execution [1][2][8] Financial Performance - Adjusted earnings per share reached $3.79, surpassing the consensus estimate of $3.45, and increased by 49% from $2.54 in the same quarter last year [2] - Net revenues grew by 17% year over year to $2,010 million, exceeding the Zacks Consensus Estimate of $1,896 million; on a constant-currency basis, revenues increased by 14% [2] - Global direct-to-consumer comparable store sales rose by 13%, supported by positive retail performance across all regions and channels [3][8] Regional Performance - North America: Revenues increased by 13% year over year to $832 million, with retail channel comps rising by 13% [4] - Europe: Revenues grew by 22% year over year to $688 million, with retail channel comps up by 10% [5] - Asia: Revenues rose by 17% year over year to $446 million, with comps increasing by 16% [6][9] Margins and Costs - Adjusted gross profit margin expanded by 100 basis points year over year to 68%, driven by a favorable product mix and lower cotton costs [10] - Adjusted operating income was $283 million, with an adjusted operating margin of 14.1%, an increase of 130 basis points year over year [11] Financial Position - As of the end of the second quarter, the company had cash and short-term investments of $1.6 billion, total debt of $1.2 million, and total shareholders' equity of $2.5 billion [12] - Inventory increased by 12% year over year to $1.3 billion [12] - The company repurchased nearly $63 million of Class A Common Stock and returned about $420 million to shareholders through dividends and stock repurchases [13] Outlook - Ralph Lauren raised its full-year fiscal 2026 guidance, expecting revenue growth of 5-7% and margin expansion, reflecting strong brand momentum [15][16] - For the fiscal third quarter, the company anticipates mid-single-digit revenue growth on a constant currency basis, with operating margin expected to expand by approximately 60 to 80 basis points [18]