RH (RH) ended the recent trading session at $149.48, demonstrating a -2.35% change from the preceding day's closing price. This change lagged the S&P 500's 1.55% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 2.69%.
Prior to today's trading, shares of the furniture and housewares company had lost 15.41% lagged the Consumer Staples sector's loss of 1.59% and the S&P 500's loss of 1.8%.
The investment community will be paying close attention to the earnings performance of RH in its upcoming release. It is anticipated that the company will report an EPS of $2.13, marking a 14.11% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $882.95 million, showing a 8.77% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.08 per share and revenue of $3.5 billion, indicating changes of +68.46% and +10%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, RH holds a Zacks Rank of #4 (Sell).
Looking at valuation, RH is presently trading at a Forward P/E ratio of 16.85. Its industry sports an average Forward P/E of 19.68, so one might conclude that RH is trading at a discount comparatively.
Meanwhile, RH's PEG ratio is currently 0.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 2.63.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RH (RH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
