RH (RH) ended the recent trading session at $184.14, demonstrating a +0.16% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the furniture and housewares company witnessed a loss of 0.1% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1.13% and the S&P 500's gain of 6.69%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.09, marking a 77.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $818.86 million, indicating a 12.64% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $3.53 billion, which would represent changes of +99.26% and +11.08%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.73% increase. Right now, RH possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, RH is currently exchanging hands at a Forward P/E ratio of 17.12. This valuation marks a discount compared to its industry's average Forward P/E of 20.29.
Investors should also note that RH has a PEG ratio of 0.55 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.52.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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