Restoration Hardware (RH) Outpaces Stock Market Gains: What You Should Know

RH

Restoration Hardware (RH - Free Report) closed the most recent trading day at $130.62, moving +0.35% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the furniture and housewares company had gained 20.01% over the past month. This has outpaced the Retail-Wholesale sector's gain of 12.32% and the S&P 500's gain of 9.27% in that time.

Wall Street will be looking for positivity from RH as it approaches its next earnings report date. This is expected to be March 26, 2019. In that report, analysts expect RH to post earnings of $2.87 per share. This would mark year-over-year growth of 69.82%. Meanwhile, our latest consensus estimate is calling for revenue of $687.33 million, up 2.54% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.40 per share and revenue of $2.53 billion, which would represent changes of +175.41% and +3.49%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. RH is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 15.5. This represents a premium compared to its industry's average Forward P/E of 14.66.

Meanwhile, RH's PEG ratio is currently 0.89. 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 Retail - Home Furnishings industry currently had an average PEG ratio of 0.89 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 9% 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.

To follow RH in the coming trading sessions, be sure to utilize Zacks.com.

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