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RH (RH) Stock Sinks As Market Gains: What You Should Know
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RH (RH - Free Report) closed the most recent trading day at $170.07, moving -1.4% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.46%.
Shares of the furniture and housewares company witnessed a loss of 16.87% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 2.53%, and the S&P 500's gain of 2.38%.
The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of $2.13, indicating a 14.11% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $882.95 million, up 8.77% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.08 per share and revenue of $3.5 billion, which would represent changes of +68.46% and +10%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, RH boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 18.99. For comparison, its industry has an average Forward P/E of 20.44, which means RH is trading at a discount to the group.
Also, we should mention that RH has a PEG ratio of 0.74. 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. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 2.74.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 15% of over 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.
To follow RH in the coming trading sessions, be sure to utilize Zacks.com.
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RH (RH) Stock Sinks As Market Gains: What You Should Know
RH (RH - Free Report) closed the most recent trading day at $170.07, moving -1.4% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.46%.
Shares of the furniture and housewares company witnessed a loss of 16.87% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 2.53%, and the S&P 500's gain of 2.38%.
The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of $2.13, indicating a 14.11% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $882.95 million, up 8.77% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.08 per share and revenue of $3.5 billion, which would represent changes of +68.46% and +10%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, RH boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 18.99. For comparison, its industry has an average Forward P/E of 20.44, which means RH is trading at a discount to the group.
Also, we should mention that RH has a PEG ratio of 0.74. 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. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 2.74.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 15% of over 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.
To follow RH in the coming trading sessions, be sure to utilize Zacks.com.