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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 the most recent trading day at $605.18, moving +0.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the furniture and housewares company had lost 8.32% over the past month, lagging the Retail-Wholesale sector's gain of 1.44% and the S&P 500's gain of 3.34% in that time.

Restoration Hardware will be looking to display strength as it nears its next earnings release. In that report, analysts expect Restoration Hardware 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.

RH's full-year Zacks Consensus Estimates are calling for earnings of $25.85 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +44.98% and +31.91%, respectively.

Investors should also note any recent changes to analyst estimates for Restoration Hardware. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. Restoration Hardware is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Restoration Hardware currently has a Forward P/E ratio of 23.38. For comparison, its industry has an average Forward P/E of 15, which means Restoration Hardware is trading at a premium to the group.

Meanwhile, RH's PEG ratio is currently 1.25. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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