RH (RH) closed at $152.45 in the latest trading session, marking a -2.36% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.74%. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Shares of the furniture and housewares company witnessed a gain of 26.44% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.66%, and the S&P 500's gain of 5.39%.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is predicted to post an EPS of -$1.7, indicating a 1407.69% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $791.62 million, down 2.74% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.4 per share and a revenue of $3.63 billion, demonstrating changes of +1.75% and +5.44%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 shifted 0.58% downward. RH is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, RH is currently exchanging hands at a Forward P/E ratio of 24.41. This denotes a premium relative to the industry average Forward P/E of 18.14.
We can additionally observe that RH currently boasts a PEG ratio of 2.39. 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. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.09.
The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).