Restoration Hardware (RH) closed the most recent trading day at $140.55, moving -0.06% from the previous trading session. This change was narrower than the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the furniture and housewares company had gained 11% over the past month, outpacing the Retail-Wholesale sector's gain of 8.25% and the S&P 500's gain of 8.17% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $687.33 million, up 2.54% from the year-ago period.
Any recent changes to analyst estimates for RH should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has moved 0.11% higher. RH currently has a Zacks Rank of #2 (Buy).
Digging into valuation, RH currently has a Forward P/E ratio of 14.16. For comparison, its industry has an average Forward P/E of 14.44, which means RH is trading at a discount to the group.
Investors should also note that RH has a PEG ratio of 0.81 right now. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Restoration Hardware Holdings Inc. (RH) : Free Stock Analysis Report
To read this article on Zacks.com click here.