Ralph Lauren (NYSE:RL) is a Buy

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By Jacob Maslow

Ralph Lauren Polo Store
Polo store at KLIA2 Airport in Kuala Lumpur Malaysia.

Known for its iconic Polo brand, Ralph Lauren Corporation (NYSE:RL)has definitely seen brighter times. Its stock has not had a good year. All told, Ralph Lauren Corp. stock is down by close to 30% in 2015. The company says that this is due partly to the fact that the strong US dollar is making its offerings less attractive overseas. At some levels, this doesn’t make any sense. After all, most of its manufacturing and materials are in low-wage countries.

How can this be? Well, the sourcing may be from lower-wage countries, which benefits Ralph Lauren Corporation because the strong dollar would go a longer way in those countries. On the other hand, the strong US dollar definitely hurts Ralph Lauren because it has to sell based on its dollar projections back home. The industry it is in has a very interesting give and take of economic factors. Regardless, if you are on the market and looking for a stock to watch and potentially buy, you might want to take a look at this company.

Ralph Lauren is one of the most solid brands on the global fashion scene. It is forever hip. It is always classy, and it commands a premium. Don’t expect this brand to go anywhere anytime soon. Its stock may not be doing all that well recently, and this is precisely the kind of cue you should be looking for.

Expect the stock to drop further. Once it starts dropping, you might want to set aside some money to start buying into the stock. But leave enough cash on the side. The reason you want to do that is you want to dollar-cost average the stock, meaning the further it drops, the more stock you buy. This way, once it finally hits the bottom and you bought enough shares, it doesn’t take much for it to appreciate for you to register a profit. This is definitely one stock worth paying attention to.

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