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Restoration Hardware (RH) Dips More Than Broader Markets: What You Should Know

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Restoration Hardware (RH - Free Report) closed the most recent trading day at $661.64, moving -0.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.75%.

Heading into today, shares of the furniture and housewares company had gained 1.7% over the past month, outpacing the Retail-Wholesale sector's gain of 1.15% and lagging the S&P 500's gain of 2.74% in that time.

Investors will be hoping for strength from RH as it approaches its next earnings release. On that day, RH is projected to report earnings of $6.37 per share, which would represent year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $972.26 million, up 37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.36 per share and revenue of $3.68 billion, which would represent changes of +25.41% and +29.23%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RH. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant within the past month. RH is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 29.87. This represents a premium compared to its industry's average Forward P/E of 15.5.

Investors should also note that RH has a PEG ratio of 1.7 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 1.51 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 18, which puts it in the top 8% 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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