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The latest trading session saw RH (RH) ending at $225.67, denoting a -0.16% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. On the other hand, the Dow registered a loss of 0.64%, and the technology-centric Nasdaq increased by 1.61%.
Shares of the furniture and housewares company have appreciated by 38.01% over the course of the past month, outperforming the Consumer Staples sector's loss of 0.38% and the S&P 500's gain of 9.07%.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.06, indicating an 85% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $818.86 million, indicating a 12.64% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.65 per share and a revenue of $3.53 billion, representing changes of +97.59% and +11.08%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for RH. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.99% fall in the Zacks Consensus EPS estimate. RH is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, RH is presently trading at a Forward P/E ratio of 21.22. This valuation marks a discount compared to its industry's average Forward P/E of 21.29.
We can also see that RH currently has a PEG ratio of 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. RH's industry had an average PEG ratio of 3.65 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 27% of all 250+ industries.