In the latest trading session, RH (RH) closed at $221.19, marking a -4.13% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.44%.
The stock of furniture and housewares company has risen by 5.75% in the past month, leading the Consumer Staples sector's loss of 0.21% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of RH in its upcoming release. The company's earnings per share (EPS) are projected to be $3.18, reflecting a 88.17% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $907.28 million, showing a 9.36% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and revenue of $3.53 billion, which would represent changes of +99.63% and +11.01%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. RH is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, RH currently has a Forward P/E ratio of 21.45. For comparison, its industry has an average Forward P/E of 22.2, which means RH is trading at a discount to the group.
We can also see that RH currently has a PEG ratio of 0.64. 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. As the market closed yesterday, the Consumer Products – Staples industry was having an average PEG ratio of 3.43.
The Consumer Products – Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 28% of all industries, numbering over 250.
