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RH (RH) Stock Moves 0.58%: What You Should Know

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RH (RH - Free Report) closed the latest trading day at $184.60, indicating a +0.58% change from the previous session's end. This move traded in line with S&P 500. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.

The furniture and housewares company's shares have seen a decrease of 21.71% over the last month, not keeping up with the Consumer Staples sector's loss of 0.35% and the S&P 500's loss of 0.84%.

The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of -$0.07, indicating an 82.5% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $818.89 million, indicating a 12.65% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.66 per share and revenue of $3.53 billion. These totals would mark changes of +97.77% and +11.08%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 20.12% downward. RH currently has a Zacks Rank of #4 (Sell).

In terms of valuation, RH is currently trading at a Forward P/E ratio of 17.22. Its industry sports an average Forward P/E of 20.96, so one might conclude that RH is trading at a discount comparatively.

We can additionally observe that RH currently boasts a PEG ratio of 0.57. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 3.18 based on yesterday's closing prices.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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