RH (RH, $529.00) beats Q4 earnings expectations; expects 50% revenue growth in Q1
RH reported fourth-quarter earnings that surpassed analysts’ expectations. The company also provided first quarter guidance that indicates an expected growth of atleast +50%.
Home furnishings retailer’s adjusted diluted net income came in at $5.07 a share, compared to the $4.75 a share expected by analysts polled by FactSet. The earnings are also higher than the year-ago quarter’s $3.72 a share.
The company’s revenue rose to $812.4 million (from $665 million in the year-ago quarter), which beat the $797.4 million anticipated by the analysts.
For the first-quarter, RH is expecting a revenue growth of at least 50%, and adjusted operating margin in the 20% range. “With the momentum in the business, we believe it’s safe to say 2021 should result in revenue growth in the range of 15% to 20% with adjusted operating margin expanding 100 to 200 basis points and ROIC in excess of 60%,” CEO Gary G. Friedman said. Analysts are expecting revenue of $2.8 billion for the year.
CEO Gary G. Friedman mentioned a booming housing market, low interest rates, a record stock market, , expected rebound in jobs market, combined with the recent further acceleration in the company’s demand trends as factors behind increased optimism.
RH sees its Stochastic Oscillator climbs out of oversold territory
On December 24, 2024, the Stochastic Oscillator for RH moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 60 instances where the indicator left the oversold zone. In of the 60 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 13, 2024. You may want to consider a long position or call options on RH as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
RH moved above its 50-day moving average on November 20, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for RH crossed bullishly above the 50-day moving average on November 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RH advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 256 cases where RH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for RH moved out of overbought territory on December 16, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for RH turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
RH broke above its upper Bollinger Band on December 13, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. RH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.183) is normal, around the industry mean (12.393). P/E Ratio (56.641) is within average values for comparable stocks, (36.657). Projected Growth (PEG Ratio) (3.337) is also within normal values, averaging (2.650). RH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (2.387) is also within normal values, averaging (19.235).
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a holding company with interest in providing luxury home furnishings
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