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RH (RH) Gains As Market Dips: What You Should Know

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The most recent trading session ended with RH (RH - Free Report) standing at $346.20, reflecting a +1.8% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.5% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 1.21%.

Heading into today, shares of the furniture and housewares company had lost 18.78% over the past month, lagging the Consumer Staples sector's gain of 1.79% and the S&P 500's loss of 0.47% in that time.

Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.90, marking a 163.89% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $826.63 million, up 11.97% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for RH. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.17% higher. RH is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, RH is at present trading with a Forward P/E ratio of 24.66. This valuation marks a premium compared to its industry's average Forward P/E of 22.

Meanwhile, RH's PEG ratio is currently 2.47. 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 2.69.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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