RH (RH) ended the recent trading session at $179.57, demonstrating a +2.9% change from the preceding day’s closing price. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.
The stock of furniture and housewares company has risen by 9.73% in the past month, leading the Consumer Staples sector’s gain of 0.3% and the S&P 500’s gain of 0.77%.
The upcoming earnings release of RH will be of great interest to investors. In that report, analysts expect RH to post earnings of $0.29 per share. This would mark a year-over-year decline of 90.1%. Alongside, our most recent consensus estimate is anticipating revenue of $914.4 million, indicating a 1.7% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $3.62 billion, which would represent changes of -24.8% and +5.11%, respectively, from the prior year.
Any recent changes to analyst estimates for RH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, RH possesses a Zacks Rank of #3 (Hold).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 36.86. This signifies a premium in comparison to the average Forward P/E of 19.2 for its industry.
It’s also important to note that RH currently trades at a PEG ratio of 3.62. 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 currently had an average PEG ratio of 3.46 as of yesterday’s close.
The Consumer Products – Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
