Back to top

Image: Bigstock

RH (RH) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

RH (RH - Free Report) closed at $212.74 in the latest trading session, marking a -3.74% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.18%.

The furniture and housewares company's shares have seen an increase of 18.21% over the last month, surpassing the Consumer Staples sector's loss of 0.29% and the S&P 500's gain of 5.71%.

Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company is expected to report EPS of $3.19, up 88.76% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $907.28 million, reflecting a 9.36% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.76 per share and revenue of $3.53 billion. These totals would mark changes of +99.63% and +11.01%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. RH currently has a Zacks Rank of #3 (Hold).

Digging into valuation, RH currently has a Forward P/E ratio of 20.55. For comparison, its industry has an average Forward P/E of 20.55, which means RH is trading at no noticeable deviation to the group.

It's also important to note that RH currently trades at a PEG ratio of 0.62. 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 3.76 as trading concluded yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Published in