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This summary was created by AI, based on 5 opinions in the last 12 months.

RH has faced significant challenges lately, particularly due to tariffs impacting its overseas manufacturing and a struggling luxury furnishings market. Despite a considerable 40% drop in its stock price and a year-to-date decline of 63%, there are mixed sentiments about its growth potential, with some experts noting the company's positive demand trends in July and August. Recent performance seems perplexing as the stock has doubled since last June, despite no substantial fundamental changes in its business model. The CEO's aggressive expansion strategy, investing in luxurious experiences and real estate, raises concerns about financial sustainability, particularly given the rising interest rates and the tightened housing market. While some see a future housing boom driven by falling interest rates, others question whether RH can rebound without a fundamental shift in its operations.

Consensus
Bearish
Valuation
Overvalued
Similar
LUXR, LUX
DON'T BUY

Their products are amazing, but expensive.  They need to cut prices, though tariffs will force them to raise prices, since their products are made in Vietnam. 

BUY ON WEAKNESS

It got crushed by this week's tariffs, because most of its manufacturing is overseas. It plummeted 40% yesterday and is -63% this year. But it's a great growth company with good numbers.

RISKY

It reports Wednesday. It's a retail stock, a tough sector. It's fallen with the sector. Wait for the bounce, but in this market it feels like a bet and not an investment.

BUY

Has doubled since last June's lows, but weirdly without a fundamental change in its business, like a beat and raise quarter, just some raised guidance. The CEO did buy a lot of shares last June.

BUY
After its post-earnings surge

Demand was up 10% in July and 12% in August. Sure, you may not want to buy a stock that jumped 25% in one day, but anything related to housing (and falling interest rates) is doing well. He expects a housing boom.

DON'T BUY

They keep posting disappointing numbers and after the latest, the stock dropped 17% today. Is the CEO a visionary or driving RH to ruin? Pre-2021, RH was a juggernaut as they build luxurious stores including dining around the world at their stores. Also, they're moving into real estates, including spas and hotels. They're spending a fortune to build luxurious experiences. But their core business of luxury furnishings is struggling. They've borrowed money to fund this expansion, however, they spent a big chunk of that money to buyback shares just as interest rates rose and the housing market tightened. Can rates fall fast enough to save RH? Doesn't think so. The outlook is dwindling, but the CEO keeps spending.

BUY

The market made a mistake in selling it after a downbeat conference call, because RH bought back 17% of shares in just this quarter (23% so far this year). This is one of the biggest single-quarter buybacks he ever heard of. Buybacks shrink EPS, remember, and shows confidence from management

BUY

High quality company with excellent management team.
Hit peak revenue during Covid-19 pandemic.
Current share price presenting buying opportunity.
Expecting revenue & margins to grow.
A good long term investment over 5-10 years.


DON'T BUY

They report Thursday. Likes them, but they've been issuing disappointing numbers and their accounting issues don't inspire confidence.

BUY
Likes it as it trades at 10x earnings.
PAST TOP PICK
(A Top Pick Jan 24/22, Down 39%) High-end, and thought they could hide here amidst the luxury consumer. But when the market goes down, everything goes down. High-margin business. Will bounce back on the other side.
TOP PICK
Not affected by rising rates since the average buyer (wealthy) is not affected by rising rates. Very good time to buy since it has dropped quite a bit. He has just added to it. Should do well going forward. Analysts have 12 buys, 7 holds, 0 sells.
BUY
The home office is here to stay It had a monster quarter, but down so much since then. Similar to WSM. He expects this to roar back to ride the work-from-home trend.
BUY ON WEAKNESS
A good CEO, who has a long-term view. They report Wednesday. A bad report always triggers a sell-off, but also a buy signal.
BUY
Delivered a blow-out quarter last Wednesday. Sales are up 40% since 2019. A monster earnings beat and they raised their full-year forecast despite supply problems. They want to be a luxury lifestyle brand now. Shares are up 1,800% in the past 5 years, but has more room to run.
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RH(RH-N) Rating

Ranking : 4 out of 5

Star iconStar iconStar iconStar iconStar empty icon

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 12

Stockchase rating for RH is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

RH(RH-N) Frequently Asked Questions

What is RH stock symbol?

RH is a American stock, trading under the symbol RH-N on the New York Stock Exchange (RH). It is usually referred to as NYSE:RH or RH-N

Is RH a buy or a sell?

In the last year, 12 stock analysts published opinions about RH-N. 4 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for RH.

Is RH a good investment or a top pick?

RH was recommended as a Top Pick by on . Read the latest stock experts ratings for RH.

Why is RH stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is RH worth watching?

In the last year, there was no coverage of RH published on Stockchase.

What is RH stock price?

On 2025-04-25, RH (RH-N) stock closed at a price of $185.49.