Restoration Hardware (RH) closed at $141.64 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the furniture and housewares company had gained 9.04% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.97% and the S&P 500's gain of 5.93% in that time.
RH will be looking to display strength as it nears its nex t earnings release. The company is expected to report EPS of $2.87, up 69.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $686.70 million, up 2.45% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. RH is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that RH has a Forward P/E ratio of 14.03 right now. This represents a discount compared to its industry's average Forward P/E of 14.46.
Investors should also note that RH has a PEG ratio of 0.8 right now. 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 Retail - Home Furnishings was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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