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RH (RH) closed the latest trading day at $184.60, indicating a +0.58% change from the previous session's end. This move traded in line with S&P 500. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.
The furniture and housewares company's shares have seen a decrease of 21.71% over the last month, not keeping up with the Consumer Staples sector's loss of 0.35% and the S&P 500's loss of 0.84%.
The upcoming earnings release of RH will be of great interest to investors. The company is predicted to post an EPS of -$0.07, indicating an 82.5% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $818.89 million, indicating a 12.65% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.66 per share and revenue of $3.53 billion. These totals would mark changes of +97.77% and +11.08%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 has shifted 20.12% downward. RH currently has a Zacks Rank of #4 (Sell).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 17.22. Its industry sports an average Forward P/E of 20.96, so one might conclude that RH is trading at a discount comparatively.
We can additionally observe that RH currently boasts a PEG ratio of 0.57. 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. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 3.18 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% of all 250+ industries.