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RH (RH) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, RH (RH - Free Report) closed at $276.21, marking a +0.58% move from the previous day. This move outpaced the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.4%.

The furniture and housewares company's shares have seen an increase of 19.54% over the last month, surpassing the Consumer Staples sector's gain of 1.71% and the S&P 500's gain of 3.78%.

The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of $1.59, indicating a 59.54% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $827.71 million, showing a 3.4% escalation compared to the year-ago quarter.

RH's full-year Zacks Consensus Estimates are calling for earnings of $8.01 per share and revenue of $3.22 billion. These results would represent year-over-year changes of +16.59% and +6.22%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.1% lower. Right now, RH possesses a Zacks Rank of #3 (Hold).

Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 34.28. This indicates a premium in contrast to its industry's Forward P/E of 18.14.

We can additionally observe that RH currently boasts a PEG ratio of 1.04. 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. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 1.94.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 34% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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