Yahoo Finance RH (RH) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, RH RH closed at $344.73, marking a -0.89% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.43%.
Prior to today's trading, shares of the furniture and housewares company had gained 5.13% over the past month. This has outpaced the Retail-Wholesale sector's loss of 10.21% and the S&P 500's loss of 8.48% 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 $5.46 per share. This would mark year-over-year growth of 11.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $925.28 million, up 7.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.21 per share and revenue of $3.99 billion. These totals would mark changes of +0.34% and +6.07%, respectively, from last year.
Any recent changes to analyst estimates for RH should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.2% higher. Restoration Hardware is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 13.27. Its industry sports an average Forward P/E of 9.97, so we one might conclude that Restoration Hardware is trading at a premium comparatively.
Investors should also note that RH has a PEG ratio of 1.17 right now. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
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