RH (RH) closed the most recent trading day at $174.27, moving -1.07% from the previous trading session. This change lagged the S&P 500's 0.53% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.52%.
The stock of furniture and housewares company has fallen by 24.54% in the past month, lagging the Consumer Staples sector's loss of 1.68% and the S&P 500's gain of 0.71%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. In that report, analysts expect RH to post earnings of $2.13 per share. This would mark a year-over-year decline of 14.11%. In the meantime, our current consensus estimate forecasts the revenue to be $882.95 million, indicating a 8.77% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.08 per share and revenue of $3.5 billion. These totals would mark changes of +68.46% and +10%, respectively, from last year.
Any recent changes to analyst estimates for RH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RH is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, RH is currently being traded at a Forward P/E ratio of 19.39. Its industry sports an average Forward P/E of 21.28, so one might conclude that RH is trading at a discount comparatively.
Also, we should mention that RH has a PEG ratio of 0.76. 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. The Consumer Products - Staples industry had an average PEG ratio of 2.94 as trading concluded yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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