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RH (RH) Stock Dips While Market Gains: Key Facts

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RH (RH - Free Report) closed the most recent trading day at $385.64, moving -0.9% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq increased by 0.63%.

Shares of the furniture and housewares company witnessed a gain of 19.99% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.3% and the S&P 500's gain of 3.15%.

Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.67, indicating a 735.71% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $810.9 million, up 7.94% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.66 per share and a revenue of $3.16 billion, representing changes of -17.61% and +4.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RH. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. Right now, RH possesses a Zacks Rank of #3 (Hold).

In terms of valuation, RH is presently being traded at a Forward P/E ratio of 68.79. This represents a premium compared to its industry's average Forward P/E of 23.46.

It's also important to note that RH currently trades at a PEG ratio of 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consumer Products - Staples industry had an average PEG ratio of 2.2 as trading concluded yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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