RH (RH) closed at $182.87 in the latest trading session, marking a -1.85% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Elsewhere, the Dow saw a downswing of 0.95%, while the tech-heavy Nasdaq depreciated by 0.87%.
Heading into today, shares of the furniture and housewares company had gained 13.27% over the past month, outpacing the Consumer Staples sector's gain of 2.17% and the S&P 500's gain of 11.54% in that time.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is expected to report EPS of -$0.07, up 82.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $818.89 million, up 12.65% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.66 per share and a revenue of $3.53 billion, indicating changes of +97.77% and +11.08%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for RH. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 2.3% fall in the Zacks Consensus EPS estimate. At present, RH boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 17.48. For comparison, its industry has an average Forward P/E of 21.58, which means RH is trading at a discount to the group.
We can additionally observe that RH currently boasts a PEG ratio of 0.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Consumer Products - Staples industry had an average PEG ratio of 3.59 as trading concluded yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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RH (RH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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