In the latest trading session, Restoration Hardware (RH) closed at $132.21, marking a -0.86% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.
Coming into today, shares of the furniture and housewares company had lost 8.02% in the past month. In that same time, the Retail-Wholesale sector gained 2.23%, while the S&P 500 gained 2.14%.
Wall Street will be looking for positivity from RH as it approaches its next earnings report date. The company is expected to report EPS of $2.87, up 69.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $686.70 million, up 2.45% from the year-ago period.
Investors should also note any recent changes to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. RH is currently a Zacks Rank #1 (Strong Buy).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 13.45. Its industry sports an average Forward P/E of 16.24, so we one might conclude that RH is trading at a discount comparatively.
We can also see that RH currently has a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RH's industry had an average PEG ratio of 0.86 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Restoration Hardware Holdings Inc. (RH) : Free Stock Analysis Report
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