RH (RH) ended the recent trading session at $184.01, demonstrating a -3.36% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.26%.
Heading into today, shares of the furniture and housewares company had lost 9.25% over the past month, lagging the Consumer Staples sector's gain of 9.51% and the S&P 500's loss of 0.25%.
The upcoming earnings release of RH will be of great interest to investors. In that report, analysts expect RH to post earnings of $2.24 per share. This would mark year-over-year growth of 41.77%. In the meantime, our current consensus estimate forecasts the revenue to be $873.05 million, indicating a 7.46% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7 per share and revenue of $3.47 billion, which would represent changes of +29.87% and +9.09%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.21% fall in the Zacks Consensus EPS estimate. RH is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, RH currently has a Forward P/E ratio of 18.77. This expresses a discount compared to the average Forward P/E of 20.82 of its industry.
Also, we should mention that RH has a PEG ratio of 0.8. 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 3.05.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons 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.
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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