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RH (RH) Stock Dips While Market Gains: Key Facts

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RH (RH - Free Report) ended the recent trading session at $157.77, demonstrating a -2.72% change from the preceding day's closing price. This change lagged the S&P 500's 1.54% gain on the day. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 2.27%.

The stock of furniture and housewares company has fallen by 6.45% in the past month, lagging the Consumer Staples sector's loss of 0.95% and the S&P 500's gain of 0.29%.

Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.13, reflecting a 14.11% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $882.95 million, reflecting a 8.77% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $9.08 per share and a revenue of $3.5 billion, demonstrating changes of +68.46% and +12.63%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. RH is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, RH is currently trading at a Forward P/E ratio of 17.85. This denotes a discount relative to the industry average Forward P/E of 21.07.

We can also see that RH currently has a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Consumer Products - Staples industry held an average PEG ratio of 2.89.

The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 17% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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