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Is Restoration Hardware Holdings (RH) Outperforming Other Retail-Wholesale Stocks This Year?

Zacks Equity Research

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Restoration Hardware Holdings (RH) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Restoration Hardware Holdings is a member of our Retail-Wholesale group, which includes 223 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. RH is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for RH's full-year earnings has moved 12.41% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that RH has returned about 19.39% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of 17.85%. This shows that Restoration Hardware Holdings is outperforming its peers so far this year.

To break things down more, RH belongs to the Retail - Home Furnishings industry, a group that includes 9 individual companies and currently sits at #63 in the Zacks Industry Rank. On average, stocks in this group have gained 24.26% this year, meaning that RH is slightly underperforming its industry in terms of year-to-date returns.

Investors in the Retail-Wholesale sector will want to keep a close eye on RH as it attempts to continue its solid performance.


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