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RH (RH) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, RH (RH - Free Report) closed at $276.26, marking a -0.73% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.03%.
Shares of the furniture and housewares company witnessed a gain of 0.48% over the previous month, beating the performance of the Consumer Staples sector with its loss of 3.79% and underperforming the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of RH in its upcoming release. The company is forecasted to report an EPS of -$0.19, showcasing a 108.6% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $724.67 million, indicating a 1.96% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.08 per share and revenue of $3.24 billion. These totals would mark changes of +32.17% and +7%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for RH. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 22.76% lower. RH currently has a Zacks Rank of #3 (Hold).
Looking at valuation, RH is presently trading at a Forward P/E ratio of 30.66. This indicates a premium in contrast to its industry's Forward P/E of 18.53.
Also, we should mention that RH has a PEG ratio of 3.07. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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RH (RH) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, RH (RH - Free Report) closed at $276.26, marking a -0.73% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.03%.
Shares of the furniture and housewares company witnessed a gain of 0.48% over the previous month, beating the performance of the Consumer Staples sector with its loss of 3.79% and underperforming the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of RH in its upcoming release. The company is forecasted to report an EPS of -$0.19, showcasing a 108.6% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $724.67 million, indicating a 1.96% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.08 per share and revenue of $3.24 billion. These totals would mark changes of +32.17% and +7%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for RH. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 22.76% lower. RH currently has a Zacks Rank of #3 (Hold).
Looking at valuation, RH is presently trading at a Forward P/E ratio of 30.66. This indicates a premium in contrast to its industry's Forward P/E of 18.53.
Also, we should mention that RH has a PEG ratio of 3.07. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.