Restoration Hardware (RH) closed at $173.32 in the latest trading session, marking a -1.43% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 0.56%.
Prior to today's trading, shares of the furniture and housewares company had gained 7.2% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.79% and the S&P 500's gain of 4.42% in that time.
Investors will be hoping for strength from RH as it approaches its next earnings release. The company is expected to report EPS of $2.21, up 27.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $675.57 million, up 5.8% from the prior-year quarter.
RH's full-year Zacks Consensus Estimates are calling for earnings of $10.81 per share and revenue of $2.69 billion. These results would represent year-over-year changes of +26.58% and +6.98%, respectively.
It is also important to note the recent changes to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate 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 16.27. This represents a premium compared to its industry's average Forward P/E of 14.36.
Also, we should mention that RH has a PEG ratio of 1.3. 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 1.3 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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