In the latest trading session, RH (RH) closed at $143.45, marking a +1.48% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the furniture and housewares company had lost 31.69% over the past month, lagging the Consumer Staples sector's loss of 3.04% and the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. In that report, analysts expect RH to post earnings of $2.24 per share. This would mark year-over-year growth of 41.77%. Alongside, our most recent consensus estimate is anticipating revenue of $873.05 million, indicating a 7.46% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7 per share and a revenue of $3.47 billion, demonstrating changes of +29.87% and +9.09%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. RH is currently a Zacks Rank #3 (Hold).
From a valuation perspective, RH is currently exchanging hands at a Forward P/E ratio of 13.93. For comparison, its industry has an average Forward P/E of 19.05, which means RH is trading at a discount to the group.
Investors should also note that RH has a PEG ratio of 0.59 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.99 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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
