RH (RH) closed at $112.89 in the latest trading session, marking a -4.23% move from the prior day. This move lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Heading into today, shares of the furniture and housewares company had lost 7.06% over the past month, lagging the Consumer Staples sector's gain of 1.5% and the S&P 500's gain of 2.44%.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is expected to report EPS of $0.67, down 60.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $932.39 million, up 5.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.23 per share and a revenue of $3.63 billion, signifying shifts of -16.85% and +5.39%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.25% lower. RH currently has a Zacks Rank of #3 (Hold).
In the context of valuation, RH is at present trading with a Forward P/E ratio of 22.55. This valuation marks a premium compared to its industry average Forward P/E of 21.37.
One should further note that RH currently holds a PEG ratio of 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Consumer Products - Staples industry stood at 2.87 at the close of the market yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).