Just noticed RH took a hit today while the broader market was actually up. Stock dropped about 3% to close around $151, which is interesting considering the S&P 500 gained almost a point. The furniture stock has been rough lately too - down about 22% over the past month while the overall market is basically flat. What caught my eye though is the valuation setup on RH right now. Trading at a forward P/E of 15.36, which is actually cheaper than the industry average of 19.61. The PEG ratio is sitting at 0.66 compared to the sector average of 2.83, so on paper it looks pretty reasonable. Analysts are expecting RH to post earnings of $2.24 next quarter, up 42% year-over-year, with revenue projected around $873 million. For the full year they're calling $7 per share in earnings and $3.47 billion in revenue. The consensus estimate on RH has dipped slightly over the past month, and the Zacks Rank currently sits at Hold. Worth keeping tabs on the earnings release to see if the company can actually deliver on those expectations. If they do, could be a decent entry point given how beaten down the stock has been.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin