In the latest trading session, Restoration Hardware (RH - Free Report) closed at $121.90, marking a -0.79% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.66%.
Prior to today's trading, shares of the furniture and housewares company had gained 51.06% over the past month. This has outpaced the Retail-Wholesale sector's gain of 10.51% and the S&P 500's gain of 3.15% in that time.
RH will be looking to display strength as it nears its next earnings release. In that report, analysts expect RH to post earnings of $0.26 per share. This would mark a year-over-year decline of 85.95%. Our most recent consensus estimate is calling for quarterly revenue of $444.86 million, down 25.71% from the year-ago period.
RH's full-year Zacks Consensus Estimates are calling for earnings of $7.56 per share and revenue of $2.34 billion. These results would represent year-over-year changes of -35.16% and -11.55%, respectively.
Any recent changes to analyst estimates for RH should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 44.65% lower within the past month. RH is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, RH is holding a Forward P/E ratio of 16.24. For comparison, its industry has an average Forward P/E of 15.63, which means RH is trading at a premium to the group.
We can also see that RH currently has a PEG ratio of 1.27. 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 was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 8% 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.
To follow RH in the coming trading sessions, be sure to utilize Zacks.com.