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RH (RH) Falls More Steeply Than Broader Market: What Investors Need to Know
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RH (RH - Free Report) ended the recent trading session at $122.35, demonstrating a -5.86% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 1.13%, and the Nasdaq, a tech-heavy index, lost 0.19%.
The stock of furniture and housewares company has risen by 14.55% in the past month, leading the Consumer Staples sector's gain of 3.16% and the S&P 500's gain of 10.02%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company is predicted to post an EPS of -$1.7, indicating a 1407.69% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $791.62 million, down 2.74% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.43 per share and revenue of $3.63 billion, indicating changes of +2.23% and +5.49%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 13.64% fall in the Zacks Consensus EPS estimate. 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 20.21. For comparison, its industry has an average Forward P/E of 19.66, which means RH is trading at a premium to the group.
Also, we should mention that RH has a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.14.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 19% of all 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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RH (RH) Falls More Steeply Than Broader Market: What Investors Need to Know
RH (RH - Free Report) ended the recent trading session at $122.35, demonstrating a -5.86% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 1.13%, and the Nasdaq, a tech-heavy index, lost 0.19%.
The stock of furniture and housewares company has risen by 14.55% in the past month, leading the Consumer Staples sector's gain of 3.16% and the S&P 500's gain of 10.02%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company is predicted to post an EPS of -$1.7, indicating a 1407.69% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $791.62 million, down 2.74% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.43 per share and revenue of $3.63 billion, indicating changes of +2.23% and +5.49%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 13.64% fall in the Zacks Consensus EPS estimate. 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 20.21. For comparison, its industry has an average Forward P/E of 19.66, which means RH is trading at a premium to the group.
Also, we should mention that RH has a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.14.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 19% of all 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.