In the latest trading session, Restoration Hardware (RH - Free Report) closed at $174.76, marking a -0.16% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the furniture and housewares company had lost 1% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.5% and the S&P 500's gain of 7.08% in that time.
Wall Street will be looking for positivity from RH as it approaches its next earnings report date. In that report, analysts expect RH to post earnings of $2.21 per share. This would mark year-over-year growth of 27.75%. Meanwhile, our latest consensus estimate is calling for revenue of $675.57 million, up 5.8% from the prior-year quarter.
RH's full-year Zacks Consensus Estimates are calling for earnings of $10.81 per share and revenue of $2.69 billion. These results would represent year-over-year changes of +26.58% and +6.98%, respectively.
Investors should also note any recent changes to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. RH is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, RH currently has a Forward P/E ratio of 16.2. This represents a premium compared to its industry's average Forward P/E of 15.39.
It is also worth noting that RH currently has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.02 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 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.