In the latest trading session, RH (RH) closed at $221.19, marking a -4.13% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.44%.
The stock of furniture and housewares company has risen by 5.75% in the past month, leading the Consumer Staples sector's loss of 0.21% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of RH in its upcoming release. The company's earnings per share (EPS) are projected to be $3.18, reflecting a 88.17% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $907.28 million, showing a 9.36% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and revenue of $3.53 billion, which would represent changes of +99.63% and +11.01%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. RH is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, RH currently has a Forward P/E ratio of 21.45. For comparison, its industry has an average Forward P/E of 22.2, which means RH is trading at a discount to the group.
We can also see that RH currently has a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.43.
The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 28% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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