Restoration Hardware (RH) closed at $92.94 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500’s daily gain of 6%. Meanwhile, the Dow gained 5.2%, and the Nasdaq, a tech-heavy index, added 6.23%.
Coming into today, shares of the furniture and housewares company had lost 60.53% in the past month. In that same time, the Retail-Wholesale sector lost 24.7%, while the S&P 500 lost 29.18%.
Wall Street will be looking for positivity from RH as it approaches its next earnings report date. In that report, analysts expect RH to post earnings of $3.58 per share. This would mark year-over-year growth of 19.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $709.42 million, up 5.6% from the year-ago period.
Investors might also notice 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. RH is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note RH’s current valuation metrics, including its Forward P/E ratio of 6.88. This valuation marks a discount compared to its industry’s average Forward P/E of 7.11.
Investors should also note that RH has a PEG ratio of 0.39 right now. 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. The Retail – Home Furnishings was holding an average PEG ratio of 0.37 at yesterday’s closing price.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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