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RH (RH) Stock Falls Amid Market Uptick: What Investors Need to Know

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RH (RH - Free Report) ended the recent trading session at $136.05, demonstrating a -1.06% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.12%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.

Shares of the furniture and housewares company witnessed a gain of 5.09% over the previous month, beating the performance of the Consumer Staples sector with its gain of 2.6%, and underperforming the S&P 500's gain of 9.3%.

The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of -$1.6, indicating a 1330.77% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $792.04 million, indicating a 2.69% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.54 per share and revenue of $3.63 billion. These totals would mark changes of +3.97% and +5.42%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 36.31% lower within the past month. RH presently features a Zacks Rank of #5 (Strong Sell).

Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 21.04. This expresses a premium compared to the average Forward P/E of 20.14 of its industry.

It is also worth noting that RH currently has a PEG ratio of 2.06. 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. RH's industry had an average PEG ratio of 3.15 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 21% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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