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

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In the latest trading session, RH (RH - Free Report) closed at $285.15, marking a -1.6% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a rise of 0.5%, and the technology-dominated Nasdaq saw a decrease of 1.28%.

Shares of the furniture and housewares company witnessed a gain of 21.42% over the previous month, beating the performance of the Consumer Staples sector with its gain of 4.37% and the S&P 500's gain of 0.1%.

Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.59, signifying a 59.54% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $827.71 million, indicating a 3.4% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.01 per share and a revenue of $3.22 billion, indicating changes of +16.59% and +6.22%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.7% decrease. At present, RH boasts a Zacks Rank of #3 (Hold).

Looking at valuation, RH is presently trading at a Forward P/E ratio of 36.18. This represents a premium compared to its industry's average Forward P/E of 21.48.

We can also see that RH currently has a PEG ratio of 1.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Consumer Products - Staples industry held an average PEG ratio of 1.96.

The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 22% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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