Restoration Hardware (RH) closed the most recent trading day at $290.50, moving -0.96% from the previous trading session. This change was narrower than the S&P 500’s 3.2% loss on the day. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the furniture and housewares company had lost 12.65% in the past month. In that same time, the Retail-Wholesale sector lost 13.6%, while the S&P 500 lost 7.87%.
Restoration Hardware will be looking to display strength as it nears its next earnings release. In that report, analysts expect Restoration Hardware to post earnings of $5.46 per share. This would mark year-over-year growth of 11.66%. Our most recent consensus estimate is calling for quarterly revenue of $925.28 million, up 7.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.21 per share and revenue of $3.99 billion, which would represent changes of +0.34% and +6.07%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Restoration Hardware. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 0.55% higher within the past month. Restoration Hardware currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Restoration Hardware currently has a Forward P/E ratio of 11.19. This valuation marks a premium compared to its industry’s average Forward P/E of 9.75.
We can also see that RH currently has a PEG ratio of 0.99. 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 an account. The Retail – Home Furnishings industry currently had an average PEG ratio of 0.99 as of yesterday’s close.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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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