Restoration Hardware (RH - Free Report) closed the most recent trading day at $126, moving -0.1% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.27%.
Heading into today, shares of the furniture and housewares company had lost 12.72% over the past month, lagging the Retail-Wholesale sector's gain of 2.56% and the S&P 500's gain of 0.74% in that time.
RH will be looking to display strength as it nears its next earnings release, which is expected to be December 4, 2018. The company is expected to report EPS of $1.26, up 21.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $640.14 million, up 8.05% from the year-ago period.
RH's full-year Zacks Consensus Estimates are calling for earnings of $7.51 per share and revenue of $2.54 billion. These results would represent year-over-year changes of +146.23% and +4.25%, respectively.
Investors should also note any recent changes to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 13.85% higher within the past month. RH is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 16.66. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.66.
Meanwhile, RH's PEG ratio is currently 0.66. 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. The Retail - Home Furnishings was holding an average PEG ratio of 1.22 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.