An analyst sees good growth prospects for RH (RH)

With 1.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.67 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $226.7683 whereas the lowest price it dropped to was $216.55. The 52-week range on RH shows that it touched its highest point at $457.26 and its lowest point at $212.04 during that stretch. It currently has a 1-year price target of $471.00. Beta for the stock currently stands at 2.47.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RH was down-trending over the past week, with a drop of -14.24%, but this was down by -39.85% over a month. Three-month performance dropped to -41.71% while six-month performance fell -8.89%. The stock lost -21.64% in the past year, while it has lost -42.82% so far this year. A look at the trailing 12-month EPS for RH yields 3.48 with Next year EPS estimates of 13.16. For the next quarter, that number is 1.89. This implies an EPS growth rate of -15.86% for this year and 127.72% for next year. EPS is expected to grow by 41.04% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.91%.

Float and Shares Shorts:

At present, 18.60 million RH shares are outstanding with a float of 15.11 million shares on hand for trading. On 2025-02-28, short shares totaled 2.01 million, which was 1082.0 higher than short shares on 1738281600. In addition to Mr. Gary G. Friedman as the firm’s Chairman & CEO, Ms. Eri Chaya serves as its President, Chief Creative & Merchandising Officer and Director.

Institutional Ownership:

Through their ownership of 0.89226997 of RH’s outstanding shares, institutional investors have minority control over the company.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on 2024-11-02, RH reported revenue of $811732000.0 and operating income of $101468000.0. The EBITDA in the recently reported quarter was $135518000.0 and diluted EPS was $1.66.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RH since 17 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RH analysts setting a high price target of 556.0 and a low target of 304.0, the average target price over the next 12 months is 457.48264. Based on these targets, RH could surge 147.05% to reach the target high and rise by 35.08% to reach the target low. Reaching the average price target will result in a growth of 103.27% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. Analysts have provided yearly estimates in a range of $8.23942 being high and $7.06521 being low. For RH, this leads to a yearly average estimate of $7.79163. Based on analyst estimates, the high estimate for the next quarter is $2.49 and the low estimate is $0.86. The average estimate for the next quarter is thus $1.4.