Restoration Hardware (RH) Dips More Than Broader Markets: What You Should Know
Restoration Hardware (RH) closed at $245.77 in the latest trading session, marking a -1.55% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Heading into today, shares of the furniture and housewares company had gained 11.51% over the past month, outpacing the Retail-Wholesale sector's gain of 4.26% and the S&P 500's gain of 1.91% in that time.
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, our latest consensus estimate is calling for revenue of $709.33 million, up 5.58% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for RH. These revisions help to show the ever-changing nature of 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. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. RH is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, RH currently has a Forward P/E ratio of 18.22. For comparison, its industry has an average Forward P/E of 14.25, which means RH is trading at a premium to the group.
Also, we should mention that RH has a PEG ratio of 1.03. 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. RH's industry had an average PEG ratio of 0.93 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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