RH, together with its subsidiaries, operates as a retailer in the home furnishings and operates under RH Galleries and RH brand names in the District of Columbia and Canada, as well as Waterworks showrooms throughout the United States and the United Kingdom. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com, and Source Books, a series of catalogs. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

RH looks like a company with a rich valuation and a strong, though not flawless, operating base. On valuation multiples, the picture is mixed: P/E is noticeably above the industry median, P/B is extremely high, while P/S is only slightly above the market, which suggests a premium for the brand and expectations, but not obvious cheapness. At the same time, P/FCF is below the industry median, and its decline over the years looks constructive and partially supports the valuation. Profitability is generally decent: gross margin is above the industry, operating margin is also higher, but net profit margin is noticeably weaker than the median, indicating pressure below the operating level. ROA and ROI are below industry benchmarks, and return on tangible equity is zero, so capital efficiency cannot be called strong. Leverage remains a key risk: debt/equity and long-term debt are very high, quick ratio is weak, and current ratio is only slightly above one, meaning liquidity headroom is limited. The balance sheet, however, does not look broken: equity is positive and has recovered from negative levels in the past, and cash on hand remains moderate. Revenue and gross profit are holding at high levels and broadly stable, which supports the investment case, but EBITDA and operating income look weaker than their prior levels in terms of trend. Net income and EPS remain positive, but their trajectory does not show a sustained acceleration, and forward EPS does not look especially strong. Overall, this is more of a story about a high-quality but no longer cheap business with meaningful debt and liquidity burdens. For an investor, that means upside from multiple re-rating is limited, and fair value should account for a significant risk discount due to the balance sheet and weak short-term liquidity.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, незначительно упал. Рынок на стороне быков.

Strong index, slightly down. The market is on the bulls' side.

Сильный индекс, незначительно вырос. Рынок не поддерживает медведей.

Strong index, slightly up. The market does not support the bears.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

Средний индекс, без изменений. Приток средств в шорты на высоком уровне.

Medium index, flat. Inflow of funds into shorts at a high level.

Strong margins and revenue support RH, but high debt, weak liquidity, and expensive valuation multiples limit re-rating potential.

Key Points
Upstart seems to be grossly mispriced.
RH could soar if the housing market recovers.
Sweetgreen could finally be stabilizing.
Finding stocks that 10x isn't easy, but it happens more often than you might think. All of the Magnificent Seven stocks have been ten-baggers over their history, as have many other S&P 500 stocks.
Over a long enough time frame, successful companies at reasonable valuations can deliver returns of 900% or more. Sometimes it happens remarkably fast, as we saw with Micron and the rest of the memory sector this year. Who will be next? No one knows for sure, but below are three stocks I think have a strong chance of achieving that return over the next decade.
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1. Upstart
Upstart (NASDAQ:UPST) was a stock market darling for a brief time during the pandemic as the company posted triple-digit revenue growth and strong profits in 2021.
The stock crashed in 2022 as rising interest rates crushed the business and the hype. Today, Upstart, which is a loan originator that has built an AI model for credit, is still down 90% from its all-time high.
That seems like a mistake. Upstart is in a much stronger position than it was a few years ago. The business is profitable on a generally accepted accounting principles (GAAP) basis, and it's projecting 35% revenue growth through 2028. Upstart is also competing in a massive addressable market, especially after entering the home and auto loan markets, so it could be several times larger than it is today, with a market cap of just $2.4 billion.
Additionally, the company is in the process of securing a bank charter, which will make it easier to launch new products nationwide and lower its costs. After adjusting for stock-based compensation, as most tech companies do, Upstart is trading at a price-to-earnings ratio of around 13. That looks like a massive mispricing of this growth stock. If Upstart continues to execute, the stock will respond, and if interest rates eventually come down, the stock could skyrocket. Even without a macro tailwind, a 10x in ten years is within reach for a disruptive growth stock that looks significantly undervalued.
2. RH
RH (NYSE:RH), the home furnishings company formerly known as Restoration Hardware, was a top performer for much of its history, but it's struggled in the post-pandemic era as the housing market has stalled.
RH is now down more than 80% from its all-time high, even though the company has continued to deliver growth in a challenging macro environment, targeting revenue growth of 5.5%-7% in 2026 and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 15%-16.2%.
The company will likely need some help from macroeconomic forces like interest rates to 10x, but at a market cap of just $2.4 billion, it's not unreasonable for it to get there.
RH has expanded into Europe and has extended the brand to guesthouses and jet and yacht charters. CEO Gary Friedman is a visionary, and he will continue to push the company in new directions and hold it to high standards. His previous bold bets, like shifting to a membership model, have paid off, and RH has clearly established itself as a luxury home furnishings retailer able to earn a premium.
The housing market won't be stagnant forever, and once it wakes up, RH is poised to capitalize on the rebound in demand, which could send profits and the stock soaring.
3. Sweetgreen
Sweetgreen (NYSE:SG) has been a disappointment since its 2021 IPO. The company is the leading fast-casual salad chain, but it's struggled to turn a profit and has faced pushback from customers over its high prices. Additionally, after years of billing its Infinite Kitchen as the future of the company, Sweetgreen sold the technology to Wonder, though it retained the rights to use it. More recently, it faced a setback from the cyclosporiasis outbreak.
Despite those challenges, there are signs that Sweetgreen could be turning the corner. Its restaurants remain popular with average unit volumes of $2.5 million, not far behind Chipotle. Its new wraps, which offer a handheld option at a lower price, have been popular, and the company has also introduced a turnaround plan to cut costs and improve profitability.
At a market cap of less than $1 billion, Sweetgreen seems priced as if it were slowly going out of business, rather than as a company with a significant growth opportunity ahead. If it can return to same-store sales growth and take steps toward profitability, the stock will be rewarded. With new store expansion over the next decade, it could reach a $9 billion market cap, making it a 10x stock.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
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Jeremy Bowman has positions in RH, Sweetgreen, and Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool recommends RH and Sweetgreen. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: These 3 Stocks Will 10x in the Next 10 Years

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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
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RH (RH) Q2 2026 Earnings Call Transcript

RH (RH) reported $899.15 million in revenue for the quarter ended July 2025, representing a year-over-year increase of 8.4%. EPS of $2.93 for the same period compares to $1.69 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $905.51 million, representing a surprise of -0.7%. The company delivered an EPS surprise of -8.15%, with the consensus EPS estimate being $3.19.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RH performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of locations - RH - Total Galleries: 71 versus the three-analyst average estimate of 66.
Number of locations - RH - Modern Gallery: 1 versus 1 estimated by two analysts on average.
Number of locations - Waterworks Showrooms: 14 compared to the 14 average estimate based on two analysts.
Total leased selling square footage - End of period: 1,594.00 Ksq ft versus the two-analyst average estimate of 1,541.00 Ksq ft.
Number of locations - RH - Design Galleries: 35 compared to the 35 average estimate based on two analysts.
Number of locations - RH - Baby & Child and Teen Galleries: 1 versus the two-analyst average estimate of 2.
Stores Count - End of period: 86 versus the two-analyst average estimate of 86.
Number of locations - RH - Legacy Galleries: 27 versus the two-analyst average estimate of 27.
Number of locations - Outlets: 43 versus the two-analyst average estimate of 41.
View all Key Company Metrics for RH here>>>
Shares of RH have returned -6.8% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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RH (RH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

RH (RH) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $2.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +542.86%. A quarter ago, it was expected that this furniture and housewares company would post a loss of $2.13 per share when it actually produced a loss of $1.97, delivering a surprise of +7.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $899.15 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RH shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.
What's Next for RH?
While RH has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RH was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.89 on $964 million in revenues for the coming quarter and $4.66 on $3.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Consumer Staples sector, Constellation Brands (STZ), is yet to report results for the quarter ended August 2026.
This wine, liquor and beer company is expected to post quarterly earnings of $3.63 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Constellation Brands' revenues are expected to be $2.57 billion, up 3.8% from the year-ago quarter.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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This article originally published on Zacks Investment Research (zacks.com).

RH (RH) Q2 Earnings and Revenues Top Estimates

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in RH (Symbol: RH), where a total volume of 8,543 contracts has been traded thus far today, a contract volume which is representative of approximately 854,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 136.4% of RH's average daily trading volume over the past month, of 626,205 shares. Particularly high volume was seen for the $130 strike put option expiring September 11, 2026, with 568 contracts trading so far today, representing approximately 56,800 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $130 strike highlighted in orange:
Vertiv Holdings Co (Symbol: VRT) options are showing a volume of 59,283 contracts thus far today. That number of contracts represents approximately 5.9 million underlying shares, working out to a sizeable 135% of VRT's average daily trading volume over the past month, of 4.4 million shares. Especially high volume was seen for the $195 strike put option expiring October 16, 2026, with 6,074 contracts trading so far today, representing approximately 607,400 underlying shares of VRT. Below is a chart showing VRT's trailing twelve month trading history, with the $195 strike highlighted in orange:
And Priority Technology Holdings Inc (Symbol: PRTH) saw options trading volume of 4,153 contracts, representing approximately 415,300 underlying shares or approximately 98.8% of PRTH's average daily trading volume over the past month, of 420,180 shares. Especially high volume was seen for the $7.50 strike call option expiring October 16, 2026, with 3,914 contracts trading so far today, representing approximately 391,400 underlying shares of PRTH. Below is a chart showing PRTH's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
For the various different available expirations for RH options, VRT options, or PRTH options, visit StockOptionsChannel.com.
Further RH Research:

Noteworthy Thursday Option Activity: RH, VRT, PRTH

The following companies are expected to report earnings after hours on 09/10/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Oracle Corporation (ORCL)is reporting for the quarter ending August 31, 2026. The computer software company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.39. This value represents a 15.83% increase compared to the same quarter last year. In the past year ORCL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 13.29%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ORCL is 24.83 vs. an industry ratio of 21.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Adobe Inc. (ADBE)is reporting for the quarter ending August 31, 2026. The computer software company's consensus earnings per share forecast from the 12 analysts that follow the stock is $4.86. This value represents a 13.29% increase compared to the same quarter last year. The last two quarters ADBE had negative earnings surprises; the latest report they missed by -3.38%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ADBE is 12.85 vs. an industry ratio of 21.30.
Copart, Inc. (CPRT)is reporting for the quarter ending July 31, 2026. The auction company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.39. This value represents a 4.88% decrease compared to the same quarter last year. CPRT missed the consensus earnings per share in the 1st calendar quarter of 2026 by -10%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CPRT is 20.27 vs. an industry ratio of 3.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The Descartes Systems Group Inc. (DSGX)is reporting for the quarter ending July 31, 2026. The computer software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.57. This value represents a 32.56% increase compared to the same quarter last year. DSGX missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -12.24%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for DSGX is 31.38 vs. an industry ratio of 21.30, implying that they will have a higher earnings growth than their competitors in the same industry.
RH (RH)is reporting for the quarter ending July 31, 2026. The consumer company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.42. This value represents a 85.67% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2027 Price to Earnings ratio for RH is 33.18 vs. an industry ratio of 18.10, implying that they will have a higher earnings growth than their competitors in the same industry.
LightPath Technologies, Inc. (LPTH)is reporting for the quarter ending June 30, 2026. The electrical instrument company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.02. This value represents a 71.43% increase compared to the same quarter last year. LPTH missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -133.33%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LPTH is -101.40 vs. an industry ratio of 32.80.
Zumiez Inc. (ZUMZ)is reporting for the quarter ending July 31, 2026. The retail (shoe) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.14. This value represents a 133.33% decrease compared to the same quarter last year. ZUMZ missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -1.23%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ZUMZ is 20.17 vs. an industry ratio of 10.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Alliance Entertainment Holding Corporation (AENT)is reporting for the quarter ending June 30, 2026. The media company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.02. This value represents a 81.82% decrease compared to the same quarter last year. AENT missed the consensus earnings per share in the 4th calendar quarter of 2025 by -41.94%. The "days to cover" for this stock exceeds 28 days. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AENT is 15.14 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry.

After-Hours Earnings Report for September 10, 2026 : ORCL, ADBE, CPRT, DSGX, RH, LPTH, ZUMZ, AENT

RH RH is scheduled to report second-quarter fiscal 2026 (ended Aug. 1, 2026) results on Sept. 10, after the closing bell.
In the last reported quarter, the company’s adjusted loss per share of $1.97 was narrower than the Zacks Consensus Estimate of a loss of $2.13 by 7.5%. In the year-ago quarter, RH reported adjusted earnings of 13 cents per share. Net revenues of $800.3 million topped the consensus estimate by 1.1% but declined 1.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was negative 12.8%.
How Are Estimates Placed for RH Stock?
The Zacks Consensus Estimate for the fiscal second quarter indicates earnings of 42 cents per share, which has declined from 79 cents over the past 30 days. In the year-ago period, the company reported earnings of $2.93 per share.
The consensus estimate for revenues is pegged at $914.2 million, indicating a 1.7% year-over-year growth.
RH Price and EPS Surprise
Factors Likely to Have Shaped RH’s Q2 Performance
Assessing the Sales Environment: RH’s fiscal second-quarter revenue performance is likely to have remained constrained by a difficult housing backdrop, tariff-related sourcing disruptions and elevated backorder and special-order balances. Management expects these balances to remain unusually high in the fiscal second quarter before normalizing later in fiscal 2026. Accordingly, RH guided for fiscal second-quarter revenue growth of 0.5% to 2.5%, suggesting only modest top-line improvement during the period.
Despite these pressures, RH’s luxury positioning, international expansion and broader product transformation may have supported demand. The company has been building its presence across key European luxury markets, with Paris and Milan ramping up and London viewed by management as a potential accelerator for the international business. RH also continued expanding its trade platform and introducing higher-end customization through RH Bespoke Furniture and RH Couture Upholstery.
However, the larger benefits from RH Estates, backlog conversion and new-store growth are expected to be weighted toward the second half of fiscal 2026 rather than the fiscal second quarter. Management expects these initiatives to collectively drive a meaningful acceleration later in the year.
Factors Affecting Profitability: Profitability is likely to have remained under pressure from RH’s elevated investment cycle. Management guided for a fiscal second-quarter adjusted EBITDA margin of 11.5% to 13%, including an estimated 380-basis-point negative impact from pre-opening and startup expenses related to international expansion. Management indicated that a meaningful portion of these opening-related costs is transitory and should ease in the second half.
Overall, RH’s second-quarter results are expected to reflect modest revenue growth alongside continued near-term margin pressure from international investments and sourcing disruptions.
What the Zacks Model Says for RH
Our proven model predicts an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of +127.49%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Williams-Sonoma, Inc. WSM posted second-quarter fiscal 2026 adjusted earnings of $2.10 per share, up 5% year over year and came in above the Zacks Consensus Estimate of $2.05 by 2.4%. Net revenues rose 6.7% to $1.96 billion and beat the consensus mark of $1.91 billion by 2.5%.
Williams-Sonoma raised fiscal 2026 guidance after strong year-to-date performance. The company now expects annual net revenues to increase 4.7% to 7.2%, with comparable brand revenue growth of 4.0% to 6.5%. Non-GAAP operating margin is projected to be between 17.8% and 18.2%.
The Home Depot, Inc. HD has delivered solid second-quarter fiscal 2026 results, with the top and bottom lines surpassing the Zacks Consensus Estimate. Adjusted earnings were $4.92 per share, up 5.1% year over year from $4.68. The figure topped the Zacks Consensus Estimate of $4.71.
Home Depot reaffirmed its fiscal 2026 outlook, calling for total sales growth of 2.5-4.5% and comps growth of flat to 2%. The company anticipates earnings per share to be flat to up 4% from $14.23 in the year-ago quarter. Meanwhile, adjusted earnings per share are also projected to be flat to up 4% from the $14.69 reported in the year-ago quarter.
Lowe’s Companies, Inc. LOW reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.
Lowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.
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This article originally published on Zacks Investment Research (zacks.com).

Here's What to Expect Ahead of RH's Q2 Earnings Release

Ollie's Bargain Outlet (OLLI) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +24.56%. A quarter ago, it was expected that this retailer would post earnings of $0.87 per share when it actually produced earnings of $0.91, delivering a surprise of +4.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $741.31 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 1.54%. This compares to year-ago revenues of $679.56 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ollie's Bargain Outlet shares have lost about 34% since the beginning of the year versus the S&P 500's gain of 11.5%.
What's Next for Ollie's Bargain Outlet?
While Ollie's Bargain Outlet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ollie's Bargain Outlet was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $682.41 million in revenues for the coming quarter and $4.44 on $2.97 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, RH (RH), has yet to report results for the quarter ended July 2026.
This furniture and housewares company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -85.7%. The consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level.
RH's revenues are expected to be $914.18 million, up 1.7% from the year-ago quarter.
Should You Invest in Ollie's Bargain Outlet Holdings, Inc. (OLLI)?
Before you invest in Ollie's Bargain Outlet Holdings, Inc. (OLLI), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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 Report
This article originally published on Zacks Investment Research (zacks.com).

Ollie's Bargain Outlet (OLLI) Q2 Earnings Top Estimates

BBB Foods (TBBB) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.56%. A quarter ago, it was expected that this discount retailer would post a loss of $0.19 per share when it actually produced a loss of $0.27, delivering a surprise of -42.11%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
BBB Foods, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.5 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.46%. This compares to year-ago revenues of $963 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
BBB Foods shares have added about 24.1% since the beginning of the year versus the S&P 500's gain of 12.9%.
What's Next for BBB Foods?
While BBB Foods has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for BBB Foods was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.13 on $1.53 billion in revenues for the coming quarter and -$0.61 on $5.91 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
RH (RH), another stock in the same industry, has yet to report results for the quarter ended July 2026.
This furniture and housewares company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -90.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
RH's revenues are expected to be $913.96 million, up 1.7% from the year-ago quarter.
Should You Invest in BBB Foods Inc. (TBBB)?
Before you invest in BBB Foods Inc. (TBBB), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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 Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BBB Foods (TBBB) Reports Q2 Loss, Beats Revenue Estimates

Key Points
SoundHound has a big opportunity if it can convert LivePerson's customers to its platform.
With the luxury furniture market potentially set to rebound, RH could be a great way to play this turnaround.
Supermicro is a stock I'd continue to avoid given its low margins and its continual run-ins with regulators.
When a stock is heavily shorted, it can be a warning sign for investors. However, if these stocks defy expectations, short covering can be the launching pad for a strong run.
Let's look at two stocks with heavy short interest I'd consider buying: artificial intelligence (AI) voice company SoundHound AI (NASDAQ: SOUN) and luxury furniture brand RH (NYSE: RH). One I'd avoid is Super Micro Computer (NASDAQ: SMCI).
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Consider buying SoundHound AI stock
With over 40% short interest, SoundHound AI is one of the most heavily shorted stocks in the market. Valuation could be one reason why, with the stock trading at a forward price-to-sales (P/S) multiple of 10 times 2027 analyst estimates. However, the bigger reason is likely its pending merger with LivePerson.
LivePerson is a distressed company with heavy debt, so the deal carries significant risks. However, SoundHound isn't paying a hefty price tag, and it could be a calculated risk worth taking. Meanwhile, it will seek to quickly retire LivePerson's discounted debt at deal close through a mix of cash and equity.
LivePerson will give SoundHound a large, established customer base to which it can upsell a more comprehensive solution based on its AI voice technology and agentic AI platform. Essentially, SoundHound is buying customer relationships and looking to incorporate its technology to enter the lucrative call center and customer service spaces.
While the shorts are eyeing a potential equity raise to pay off LivePerson's debt as a catalyst for the stock to decline, if SoundHound can stabilize churn and convert enterprises to its platform, the deal could become a home run that sends the stock significantly higher.
Consider buying RH stock
The home furnishing industry has struggled since the pandemic, and with RH aggressively expanding in Europe with lavish, expensive new stores, it is easy to see why RH is a popular short. However, the company's more than 30% short interest could be the rocket fuel to take this stock higher.
RH's CEO Gary Friedman is one of the most respected executives in the home furnishings industry. In addition to his bold bet on Europe, he is introducing one of the company's biggest brand extensions ever: RH Estates. This will be a more traditional furniture line, aimed at wealthy homeowners, and will include bespoke, custom-made collections for the ultra-wealthy and design professionals. This will be a high-margin business that Friedman believes could become RH's biggest growth driver in the coming years.
While investors are betting against RH, commentary from online furniture retailer Wayfair could be a good omen for the company. Wayfair recently came out and said its luxury furniture segment was booming, with its high-end Perigold brand seeing 35% revenue growth in the second quarter. If the high end of the furniture market is rebounding, RH could be a great way to play it, especially given its high short interest.
You may want to avoid Super Micro Computer
With a 15% short interest, Super Micro Computer is another heavily shorted stock, and it is one I would continue to avoid on the long side. The company actually gave a very strong update for its fiscal Q4, with its gross margins of 15% to 17% now projected to be much higher than its guidance of 8.2% to 8.4%. At the same time, revenue is soaring as it benefits from the AI infrastructure build-out.
However, at the end of the day, Supermicro is a low-margin middleman that continues to be clouded in controversy. With Nvidia and AMD moving more toward providing complete end-to-end servers, the little proprietary value that it gives should start to fade. Meanwhile, the company has a history of questionable accounting and run-ins with regulators. There are just better ways to play the AI infrastructure build-out, which is why I'd avoid the stock.
Should you buy stock in SoundHound AI right now?
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Geoffrey Seiler has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and SoundHound AI. The Motley Fool recommends RH and Wayfair. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	Feb 26	Apr 26	Jun 26	Jul 26	Sep 26	TTM	Median
P/E	29.80	25.47	—	31.95	—	31.95	17.39
Price/Sales	—	0.75	0.94	0.94	0.69	0.69	0.66
P/B	—	43.81	—	54.96	—	54.96	1.68
P/FCF	—	11.23	—	13.06	9.60	9.60	12.74

Indicator	Feb 26	Apr 26	Jun 26	Jul 26	Sep 26	TTM	Median
ROE	—	515.00	—	—	—	515.00	15.36
ROA	—	2.14	—	2.25	—	2.25	4.97
ROI	—	3.26	—	3.46	—	3.46	8.47
Net Worth	3.28	2.49	3.10	3.26	2.40	2.40	0.82
Quick Ratio	—	0.32	—	0.37	—	0.37	0.85
Current Ratio	—	1.13	—	1.12	—	1.12	1.38

Indicator	Feb 26	Apr 26	Jun 26	Jul 26	Sep 26	TTM	Median
Net Profit Margin	—	3.01	—	3.22	—	3.22	5.79
Operating Margin	—	10.68	—	—	—	10.68	8.36
Gross Margin	—	43.52	—	—	—	43.52	39.57
Return on tangible equity	—	0.00	—	0.00	—	0.00	22.12

Indicator	Feb 26	Apr 26	Jun 26	Jul 26	Sep 26	TTM	Median
EPS	—	—	-1.97	—	2.70	2.70	0.52
EPS Forecast	—	—	-2.13	—	0.42	0.42	0.51
Revenue	—	800.00M	—	922.00M	—	922.00M	193.00M
Gross Profit	—	331.00M	—	445.00M	—	445.00M	—
EBITDA	—	100.00M	—	—	—	100.00M	—

RH

Recent quarterly and TTM performance

Valuation

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Revenue