RH (RH) Ascends But Remains Behind Market: Some Facts to Note

Company Performance - RH's stock closed at $415.27, showing a slight increase of +0.13% from the previous day, underperforming the S&P 500's gain of 0.36% [1] - Over the past month, RH's stock has increased by 1.58%, outperforming the Consumer Staples sector's decline of 0.5% but lagging behind the S&P 500's rise of 2.11% [1] Upcoming Earnings - Analysts expect RH to report earnings of$ 1.88 per share, reflecting a year-over-year growth of 161.11% [2] - The consensus estimate for RH's revenue is $826.36 million, indicating an 11.93% increase compared to the same quarter last year [2] Analyst Estimates - Changes in analyst estimates for RH are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for actionable insights [4] Zacks Rank and Performance - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically delivering an average annual return of +25% since 1988 [5] - Over the past month, the Zacks Consensus EPS estimate for RH has increased by 3.98%, and RH currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - RH has a Forward P/E ratio of 30.13, which is higher than the industry average Forward P/E of 20, suggesting that RH is trading at a premium [6] - The company has a PEG ratio of 3.01, compared to the Consumer Products - Staples industry's average PEG ratio of 2.53, indicating a higher valuation relative to expected earnings growth [7] Industry Context - The Consumer Products - Staples industry, to which RH belongs, ranks in the bottom 32% of all industries according to the Zacks Industry Rank [8] - The Zacks Industry Rank evaluates the performance of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]