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Is Restoration Hardware Holdings (RH) Stock Outpacing Its Retail-Wholesale Peers This Year?

Zacks Equity Research

Investors focused on the Retail-Wholesale space have likely heard of Restoration Hardware Holdings (RH), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Restoration Hardware Holdings is a member of the Retail-Wholesale sector. This group includes 223 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. RH is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for RH's full-year earnings has moved 12.48% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, RH has moved about 17.58% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 14.65%. This means that Restoration Hardware Holdings is outperforming the sector as a whole this year.

Looking more specifically, RH belongs to the Retail - Home Furnishings industry, which includes 9 individual stocks and currently sits at #64 in the Zacks Industry Rank. Stocks in this group have gained about 20.71% so far this year, so RH is slightly underperforming its industry this group 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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