RH (RH) ended the recent trading session at $160.68, demonstrating a +1.96% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. On the other hand, the Dow registered a loss of 0.9%, and the technology-centric Nasdaq decreased by 0.38%.
Coming into today, shares of the furniture and housewares company had lost 8.64% in the past month. In that same time, the Consumer Staples sector gained 0.75%, while the S&P 500 lost 0.5%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. On that day, RH is projected to report earnings of $2.13 per share, which would represent a year-over-year decline of 14.11%. Meanwhile, our latest consensus estimate is calling for revenue of $882.95 million, up 8.77% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, RH holds a Zacks Rank of #4 (Sell).
With respect to valuation, RH is currently being traded at a Forward P/E ratio of 17.35. This denotes a discount relative to the industry average Forward P/E of 19.68.
Investors should also note that RH has a PEG ratio of 0.68 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 2.79.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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