RH (RH) Gains As Market Dips: What You Should Know
RH (RH) closed at $320.81 in the latest trading session, marking a +0.49% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 2.13%.
Prior to today's trading, shares of the furniture and housewares company had gained 3.1% over the past month. This has outpaced the Consumer Staples sector's loss of 3.12% and lagged the S&P 500's gain of 7% in that time.
RH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.39, down 40.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $778.81 million, down 13.61% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for RH. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.98% lower within the past month. RH is currently a Zacks Rank #3 (Hold).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 18.46. This represents a premium compared to its industry's average Forward P/E of 16.55.
We can also see that RH currently has a PEG ratio of 1.85. 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. The Consumer Products - Staples was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
RH (RH) : Free Stock Analysis Report
