The most recent trading session ended with RH (RH) standing at $174.48, reflecting a +0.97% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.67%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 2.5%.
The the stock of furniture and housewares company has fallen by 31.67% in the past month, lagging the Consumer Staples sector's gain of 3.62% and the S&P 500's loss of 6.57%.
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 -$0.07 per share, which would represent year-over-year growth of 82.5%. At the same time, our most recent consensus estimate is projecting a revenue of $818.89 million, reflecting a 12.65% rise from the equivalent quarter last year.
RH's full-year Zacks Consensus Estimates are calling for earnings of $10.66 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +97.77% and +11.08%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for RH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 22.7% lower within the past month. Right now, RH possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, RH is at present trading with a Forward P/E ratio of 16.21. This valuation marks a discount compared to its industry's average Forward P/E of 20.5.
It's also important to note that RH currently trades at a PEG ratio of 0.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.33.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
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.
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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