In the latest trading session, Restoration Hardware (RH - Free Report) closed at $98.94, marking a +0.06% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 1.13%.
Heading into today, shares of the furniture and housewares company had lost 16.58% over the past month, lagging the Retail-Wholesale sector's loss of 2.95% and the S&P 500's loss of 2.34% in that time.
Wall Street will be looking for positivity from RH as it approaches its next earnings report date. The company is expected to report EPS of $1.54, up 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $583.57 million, up 4.69% from the year-ago period.
RH's full-year Zacks Consensus Estimates are calling for earnings of $8.39 per share and revenue of $2.61 billion. These results would represent year-over-year changes of -1.76% and +3.84%, respectively.
It is also important to note the recent changes to analyst estimates for RH. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. RH is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that RH has a Forward P/E ratio of 11.79 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.2.
It is also worth noting that RH currently has a PEG ratio of 0.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings industry currently had an average PEG ratio of 0.95 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% 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.