GET DAILY SIGNALSRH (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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
RH in upward trend: 10-day moving average moved above 50-day moving average on October 29, 2026
The 10-day moving average for RH crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 17 of 17 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 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
RH moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +7.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where RH advanced for three days, in 219 of 273 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for RH moved out of overbought territory on October 30, 2026. 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 31 similar instances where the indicator moved out of overbought territory. In 28 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 45 of 58 cases where RH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 78%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RH as a result. In 67 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
RH broke above its upper Bollinger Band on October 21, 2026. 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 Aroon Indicator for RH entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 10 (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 Seasonality Score of 26 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. RH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly 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: RH's P/B Ratio (21.621) is very high in comparison to the industry average of (2.313). P/E Ratio (23.215) is within average values for comparable stocks, (17.509). Projected Growth (PEG Ratio) (0.630) is also within normal values, averaging (1.159). Dividend Yield (0.000) settles around the average of (0.100) among similar stocks. P/S Ratio (0.723) is also within normal values, averaging (1.057).
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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General Information
a holding company with interest in providing luxury home furnishings
Industry SpecialtyStores
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