RH (RH) Outperforms Broader Market: What You Need to Know

In the latest close session, RH (RH) was up +2.85% at $132.03. The stock's performance was ahead of the S&P 500's daily gain of 1.01%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.22%. Coming into today, shares of the furniture and housewares company had lost 37.4% in the past month. In that same time, the Consumer Staples sector lost 6.6%, while the S&P 500 lost 2.86%. Market participants will be closely following the financial results of RH in its upcoming release. It is anticipated that the company will report an EPS of $2.24, marking a 41.77% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $873.05 million, reflecting a 7.46% rise from the equivalent quarter last year. RH's full-year Zacks Consensus Estimates are calling for earnings of $7 per share and revenue of $3.47 billion. These results would represent year-over-year changes of +29.87% and +9.09%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.21% fall in the Zacks Consensus EPS estimate. As of now, RH holds a Zacks Rank of #3 (Hold). In the context of valuation, RH is at present trading with a Forward P/E ratio of 12.65. This denotes a discount relative to the industry average Forward P/E of 19.35. Also, we should mention that RH has a PEG ratio of 0.54. 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. As of the close of trade yesterday, the Consumer Products - Staples industry held 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 157, this industry ranks in the bottom 36% of all industries, numbering over 250. 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. To follow RH in the coming trading sessions, be sure to utilize Zacks.com. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RH (RH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks