RH (RH) closed at $207.72 in the latest trading session, marking a -1.8% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the furniture and housewares company had gained 6.31% outpaced the Consumer Staples sector's loss of 0.31% and the S&P 500's gain of 3.39%.
Market participants will be closely following the financial results of RH in its upcoming release. The company is predicted to post an EPS of $3.19, indicating a 88.76% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $907.28 million, indicating a 9.36% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.76 per share and a revenue of $3.53 billion, signifying shifts of +99.63% and +11.01%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. RH is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, RH currently has a Forward P/E ratio of 19.67. This represents a discount compared to its industry average Forward P/E of 21.19.
One should further note that RH currently holds a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.4.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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