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RH (RH) Stock Moves -0.7%: What You Should Know

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In the latest market close, RH (RH - Free Report) reached $248.09, with a -0.7% movement compared to the previous day. This change was narrower than the S&P 500's 1.73% loss on the day. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 2.55%.

The furniture and housewares company's stock has dropped by 2.41% in the past month, falling short of the Consumer Staples sector's gain of 5.69% and the S&P 500's gain of 6.22%.

The upcoming earnings release of RH will be of great interest to investors. The company's earnings report is expected on September 12, 2024. On that day, RH is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 60.81%. Meanwhile, our latest consensus estimate is calling for revenue of $827.71 million, up 3.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $3.2 billion, which would represent changes of +9.46% and +5.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.94% lower. Right now, RH possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that RH has a Forward P/E ratio of 33.23 right now. For comparison, its industry has an average Forward P/E of 20.67, which means RH is trading at a premium to the group.

Investors should also note that RH has a PEG ratio of 1.01 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 2.02.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 31% echelons 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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