RH (RH) ended the recent trading session at $193.25, demonstrating a +2.67% change from the preceding day's closing price. This change outpaced the S&P 500's 0.23% gain on the day. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.8%.
Shares of the furniture and housewares company have depreciated by 4.86% over the course of the past month, underperforming the Consumer Staples sector's gain of 0.23%, and the S&P 500's gain of 3.57%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.13, reflecting a 14.11% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $882.95 million, indicating a 8.77% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.08 per share and a revenue of $3.5 billion, signifying shifts of +68.46% and +10%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for RH. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, RH holds a Zacks Rank of #5 (Strong Sell).
In the context of valuation, RH is at present trading with a Forward P/E ratio of 20.72. This denotes a discount relative to the industry average Forward P/E of 20.97.
Meanwhile, RH's PEG ratio is currently 0.81. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.8 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 17% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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