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Are Investors Undervaluing Restoration Hardware (RH) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Restoration Hardware (RH - Free Report) . RH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.19, while its industry has an average P/E of 14.48. Over the past year, RH's Forward P/E has been as high as 31.41 and as low as 12.98, with a median of 17.08.
RH is also sporting a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RH's industry currently sports an average PEG of 0.92. Over the last 12 months, RH's PEG has been as high as 1.57 and as low as 0.51, with a median of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Restoration Hardware is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RH feels like a great value stock at the moment.
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Are Investors Undervaluing Restoration Hardware (RH) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Restoration Hardware (RH - Free Report) . RH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.19, while its industry has an average P/E of 14.48. Over the past year, RH's Forward P/E has been as high as 31.41 and as low as 12.98, with a median of 17.08.
RH is also sporting a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RH's industry currently sports an average PEG of 0.92. Over the last 12 months, RH's PEG has been as high as 1.57 and as low as 0.51, with a median of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Restoration Hardware is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RH feels like a great value stock at the moment.