RH Stock is Costly but Carries Potential

Restoration HardwareRH (NYSE: RH) is a luxury furniture business that operates under the trading name Restoration Hardware Inc. It supplies lighting, bathware, décor, textiles, home and garden, and furniture products to the general retail market. Strong earnings have sent the stock soaring, and there could be more to come.

Just a week ago, the company released its latest earnings data, and it was all good news for investors. RH generated revenue of $812.62 million in the most recent quarter, a significant jump from the $664.98 million that it reported a year ago. Earnings came in at $5.07 per share, beating the average analyst estimate of $4.78 per share. This also compares favorably to the $3.72 per share that was reported in the same quarter last year.

The home market is currently expanding, and employment is rising, suggesting that RH will see continued strong revenue and earnings throughout 2021. In the previous two quarters, the company has beat analyst earnings estimates at an average of 28.42%.

The strong fiscal performance combined with the positivity that comes from overall growth in the economy has led to a favorable high-end target for this stock. The highest estimate verified by FactSet calls for a target of $675.00, suggesting that investors who buy now could generate strong returns.

Key Data:

  • 1 Year Price Growth: 19%
  • YTD Price Growth: 07%
  • 3 Month Price Growth: 18%

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