RH (RH) closed at $208.72 in the latest trading session, marking a +1.78% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.14%.
The stock of furniture and housewares company has fallen by 11.95% in the past month, lagging the Consumer Staples sector's gain of 9.79% and the S&P 500's loss of 1.43%.
The upcoming earnings release of RH will be of great interest to investors. The company's upcoming EPS is projected at $2.24, signifying a 41.77% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $873.05 million, showing a 7.46% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7 per share and a revenue of $3.47 billion, indicating changes of +29.87% and +9.09%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for RH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. RH presently features a Zacks Rank of #3 (Hold).
Looking at valuation, RH is presently trading at a Forward P/E ratio of 20.21. This indicates a discount in contrast to its industry's Forward P/E of 21.14.
We can also see that RH currently has a PEG ratio of 0.86. 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. The average PEG ratio for the Consumer Products - Staples industry stood at 3.06 at the close of the market yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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RH (RH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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