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RH (RH) Registers a Bigger Fall Than the Market: Important Facts to Note

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RH (RH - Free Report) closed at $279.25 in the latest trading session, marking a -1.18% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.09%.

Shares of the furniture and housewares company have appreciated by 1.37% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.66% and lagging the S&P 500's gain of 4.59%.

Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's earnings report is set to go public on June 13, 2024. It is anticipated that the company will report an EPS of -$0.11, marking a 104.98% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $724.67 million, indicating a 1.96% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.99 per share and a revenue of $3.24 billion, indicating changes of +30.86% and +7%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for RH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. RH is currently a Zacks Rank #4 (Sell).

In terms of valuation, RH is presently being traded at a Forward P/E ratio of 31.42. This represents a premium compared to its industry's average Forward P/E of 19.48.

One should further note that RH currently holds a PEG ratio of 0.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Consumer Products - Staples industry held an average PEG ratio of 1.69.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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