Restoration Hardware Holdings, Inc
) continued to ascend on Monday to reach a new 52-week high of
$72.30, before closing at $71.92. Share prices of this luxury
home furnishings retailer have more than doubled year to
Based on the current price, the company is 6.9% above the
Zacks Consensus average analyst price target of $67.25.
Restoration Hardware currently trades at a forward P/E of 48.8x,
which is more than twice the peer group average of 22.6x.
Additionally, the company's long-term estimated EPS growth rate
is 23.8%, significantly higher than the peer group average.
Restoration Hardware is one such company which has been firing
on all cylinders. On studying its earnings surprise history, we
see that the stock has outperformed the Zacks Consensus Estimate
by an average of 43.3% in the trailing 3 quarters, including a
positive surprise of 50% in the recently concluded quarter.
The company posted impressive first-quarter fiscal 2013
results on Jun 13. The quarterly earnings of 6 cents a share
surpassed the Zacks Consensus Estimate by a couple of cents and
improved significantly from the loss of 4 cents witnessed in the
Encouraged by the strong quarterly results, Restoration
Hardware raised its fiscal-2013 guidance. The company now expects
top-line improvement in the range of 23% to 27%, up from its
earlier guidance range of 19% to 22%. Moreover, earnings are
forecasted in the range of $1.41 to $1.47 per share,
significantly rising from its previous guidance range of $1.29 to
We are encouraged by the company's strong performance, despite
the challenging macroeconomic environment. The company's focus on
strategic initiatives to drive growth and profitability in the
luxury home furnishings market is quite encouraging.
Considering the strengths of the stock, Restoration Hardware
carries a favorable Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Besides Restoration Hardware, other stocks worth considering
in the home furnishings & fixtures sector include
Fortune Brands Home & Security, Inc
Haverty Furniture Companies Inc.
) both of which hold a Zacks Rank #1 (Strong Buy) and are
expected to continue with their upbeat performance.
) carrying a Zacks Rank #2 (Buy) is also worth considering.
FORTUNE BRD H&S (FBHS): Free Stock Analysis
HAVERTY FURNIT (HVT): Free Stock Analysis
KIRKLANDS INC (KIRK): Free Stock Analysis
RESTORATION HDW (RH): Free Stock Analysis
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