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RH (RH) Stock Slides as Market Rises: Facts to Know Before You Trade

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RH (RH - Free Report) closed the most recent trading day at $213.02, moving -2.28% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.21%.

The furniture and housewares company's stock has climbed by 9.2% in the past month, exceeding the Consumer Staples sector's loss of 4.07% and the S&P 500's gain of 0.47%.

The investment community will be paying close attention to the earnings performance of RH in its upcoming release. The company's upcoming EPS is projected at $3.19, signifying a 88.76% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $907.28 million, indicating a 9.36% growth compared to the corresponding quarter of the prior year.

RH's full-year Zacks Consensus Estimates are calling for earnings of $10.76 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +99.63% and +11.01%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, RH possesses a Zacks Rank of #3 (Hold).

With respect to valuation, RH is currently being traded at a Forward P/E ratio of 20.27. This expresses a discount compared to the average Forward P/E of 20.37 of its industry.

Also, we should mention that RH has a PEG ratio of 0.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.43.

The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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