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RH (RH) Stock Sinks As Market Gains: What You Should Know

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In the latest market close, RH (RH - Free Report) reached $251.64, with a -1.7% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.51%.

Shares of the furniture and housewares company have depreciated by 4.09% over the course of the past month, underperforming the Consumer Staples sector's gain of 4.98% and outperforming the S&P 500's loss of 4.45%.

The upcoming earnings release of RH will be of great interest to investors. On that day, RH is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 60.05%. Our most recent consensus estimate is calling for quarterly revenue of $827.71 million, up 3.4% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and a revenue of $3.21 billion, representing changes of +15.14% and +6.11%, respectively, from the prior year.

Any recent changes to analyst estimates for RH should also be noted by investors. 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 company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.25% downward. At present, RH boasts a Zacks Rank of #3 (Hold).

In the context of valuation, RH is at present trading with a Forward P/E ratio of 32.36. This denotes a premium relative to the industry's average Forward P/E of 21.24.

We can also see that RH currently has a PEG ratio of 0.98. 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. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 28% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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