In the latest trading session, RH (RH) closed at $142.69, marking a +1.17% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.24%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
Heading into today, shares of the furniture and housewares company had gained 10.49% over the past month, outpacing the Consumer Staples sector's loss of 2.24% and the S&P 500's gain of 6.42%.
The investment community will be paying close attention to the earnings performance of RH in its upcoming release. On that day, RH is projected to report earnings of -$1.6 per share, which would represent a year-over-year decline of 1330.77%. Our most recent consensus estimate is calling for quarterly revenue of $790.63 million, down 2.86% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.19 per share and a revenue of $3.63 billion, signifying shifts of +14.31% and +5.5%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 30.33% downward. RH currently has a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, RH is currently exchanging hands at a Forward P/E ratio of 19.62. This represents no noticeable deviation compared to its industry average Forward P/E of 19.62.
We can additionally observe that RH currently boasts a PEG ratio of 1.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 3.08 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 182, finds itself in the bottom 26% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
