The latest trading session saw RH (RH – Free Report) ending at $289.48, denoting a -0.92% adjustment from its last day’s close. This move lagged the S&P 500’s daily gain of 1.12%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.46%.
The furniture and housewares company’s shares have seen a decrease of 28.05% over the last month, not keeping up with the Consumer Staples sector’s gain of 6.52% and the S&P 500’s loss of 4.13%.
The investment community will be paying close attention to the earnings performance of RH in its upcoming release. The company’s upcoming EPS is projected at $1.90, signifying a 163.89% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $826.63 million, indicating a 11.97% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. As of now, RH holds a Zacks Rank of #2 (Buy).
With respect to valuation, RH is currently being traded at a Forward P/E ratio of 21.19. For comparison, its industry has an average Forward P/E of 21.19, which means RH is trading at no noticeable deviation to the group.
It’s also important to note that RH currently trades at a PEG ratio of 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Consumer Products – Staples industry stood at 2.78 at the close of the market yesterday.
The Consumer Products – Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 44% 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.
To follow RH in the coming trading sessions, be sure to utilize Zacks.com.
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