RH (RH) closed the most recent trading day at $268.13, down 0.42% from the previous trading session. The stock lagged the S&P 500, which was up 0.2% for the day. At the same time, the Dow gained 0.24% and the tech-heavy Nasdaq gained 0.21%.
Prior to today’s trading, shares of the furniture and home goods company had lost 1.64% over the past month, lagging the Consumer Discretionary sector’s gain of 4.54% and the S&P 500’s loss of 1.49% in that time.
Analysts and investors will be keeping a close eye on RH’s performance on its upcoming earnings release. The company is expected to report earnings per share of $1.54, down 60.81% from the corresponding quarter last year. At the same time, our latest consensus estimate is calling for revenue of $827.71 million, up 3.4% from the corresponding quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.69 per share and revenue of $3.21 billion, representing changes of +11.94% and +6.11%, respectively, from the prior year.
It is also important to note the recent changes in analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive estimate revisions convey analyst confidence in the company’s business performance and earnings potential.
Based on our research, we believe these estimate changes are directly related to stock moves in nearby teams. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance that is independently audited. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.95% lower. Currently, RH sports a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should be aware that RH currently has a P/E ratio of 35. The industry average is 20.81, so one could conclude that RH is trading at a comparatively higher price.
It is also important to note that RH is currently trading at a PEG ratio of 1.06. The PEG ratio is similar to the commonly used P/E ratio, but it also takes into account the company’s expected earnings growth rate. Stocks in the Consumer Staples sector – Food Staples – have an average PEG ratio of 1.95 based on yesterday’s closing prices.
The Consumer Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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