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RH (RH) Declines More Than Market: Some Information for Investors

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The most recent trading session ended with RH (RH - Free Report) standing at $280.30, reflecting a -1.01% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.32%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.85%.

Heading into today, shares of the furniture and housewares company had gained 0.78% over the past month, lagging the Consumer Staples sector's gain of 5.16% and the S&P 500's gain of 1.52% in that time.

The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. The company's upcoming EPS is projected at $1.54, signifying a 60.81% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $827.71 million, indicating a 3.4% upward movement from the same 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, which would represent changes of +11.94% and +6.11%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 3.95% lower within the past month. RH presently features a Zacks Rank of #4 (Sell).

Looking at valuation, RH is presently trading at a Forward P/E ratio of 36.81. This valuation marks a premium compared to its industry's average Forward P/E of 20.75.

We can also see that RH currently has a PEG ratio of 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Consumer Products - Staples industry stood at 1.99 at the close of the market yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 44% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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