The most recent trading session ended with RH (RH) standing at $243.42, reflecting a -0.07% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.53%.
The the stock of furniture and housewares company has fallen by 31.15% in the past month, lagging the Consumer Staples sector's gain of 0.56% and the S&P 500's loss of 4.03%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. The company is scheduled to release its earnings on April 2, 2025. The company is predicted to post an EPS of $1.91, indicating a 165.28% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $827.27 million, indicating a 12.06% increase compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.87% lower. RH is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 17.82. For comparison, its industry has an average Forward P/E of 20.71, which means RH is trading at a discount to the group.
Meanwhile, RH's PEG ratio is currently 1.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Consumer Products - Staples industry had an average PEG ratio of 3.39 as trading concluded yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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RH (RH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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