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Has Restoration Hardware Holdings (RH) Outpaced Other Retail-Wholesale Stocks This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Restoration Hardware Holdings (RH - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of RH and the rest of the Retail-Wholesale group's stocks.

Restoration Hardware Holdings is a member of our Retail-Wholesale group, which includes 228 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. RH is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for RH's full-year earnings has moved 8.15% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, RH has gained about 52.91% so far this year. In comparison, Retail-Wholesale companies have returned an average of 10.04%. This means that Restoration Hardware Holdings is performing better than its sector in terms of year-to-date returns.

To break things down more, RH belongs to the Retail - Home Furnishings industry, a group that includes 9 individual companies and currently sits at #177 in the Zacks Industry Rank. On average, this group has lost an average of 6.55% so far this year, meaning that RH is performing better in terms of year-to-date returns.

Investors in the Retail-Wholesale sector will want to keep a close eye on RH as it attempts to continue its solid performance.


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