Restoration Hardware (RH) closed the most recent trading day at $238.65, moving -1.19% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.
Coming into today, shares of the furniture and housewares company had gained 9.26% in the past month. In that same time, the Retail-Wholesale sector gained 4.24%, while the S&P 500 gained 3.63%.
RH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.58, up 19.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $709.33 million, up 5.58% from the prior-year quarter.
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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RH currently has a Zacks Rank of #3 (Hold).
Digging into valuation, RH currently has a Forward P/E ratio of 17.63. This represents a premium compared to its industry's average Forward P/E of 15.69.
We can also see that RH currently has a PEG ratio of 0.99. 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 industry currently had an average PEG ratio of 0.85 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 76, putting it in the top 30% 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.