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Restoration Hardware (RH) Gains But Lags Market: What You Should Know
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Restoration Hardware (RH - Free Report) closed at $651 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the furniture and housewares company had lost 5.85% over the past month, lagging the Retail-Wholesale sector's gain of 4.26% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from RH as it approaches its next earnings release. In that report, analysts expect RH to post earnings of $6.69 per share. This would mark year-over-year growth of 7.9%. Our most recent consensus estimate is calling for quarterly revenue of $985.98 million, up 16.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.90 per share and revenue of $3.76 billion. These totals would mark changes of +45.26% and +31.91%, respectively, from last year.
It is also important to note the recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RH currently has a Zacks Rank of #3 (Hold).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 25.07. For comparison, its industry has an average Forward P/E of 15.6, which means RH is trading at a premium to the group.
Investors should also note that RH has a PEG ratio of 1.34 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Restoration Hardware (RH) Gains But Lags Market: What You Should Know
Restoration Hardware (RH - Free Report) closed at $651 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the furniture and housewares company had lost 5.85% over the past month, lagging the Retail-Wholesale sector's gain of 4.26% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from RH as it approaches its next earnings release. In that report, analysts expect RH to post earnings of $6.69 per share. This would mark year-over-year growth of 7.9%. Our most recent consensus estimate is calling for quarterly revenue of $985.98 million, up 16.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.90 per share and revenue of $3.76 billion. These totals would mark changes of +45.26% and +31.91%, respectively, from last year.
It is also important to note the recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RH currently has a Zacks Rank of #3 (Hold).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 25.07. For comparison, its industry has an average Forward P/E of 15.6, which means RH is trading at a premium to the group.
Investors should also note that RH has a PEG ratio of 1.34 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.