Rh Stock Buy Hold or Sell Recommendation

RH Stock  USD 348.26  51.27  17.26%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding RH is 'Strong Hold'. Macroaxis provides RH buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RH positions. The advice algorithm takes into account all of RH's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting RH's buy or sell advice are summarized below:
Real Value
334.83
Target Price
344.53
Hype Value
352.18
Market Value
348.26
Naive Value
320.65
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell RH given historical horizon and risk tolerance towards RH. When Macroaxis issues a 'buy' or 'sell' recommendation for RH, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out RH Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in RH Stock please use our How to Invest in RH guide.
In addition, we conduct extensive research on individual companies such as RH and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards RH. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

Execute RH Buy or Sell Advice

The RH recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on RH. Macroaxis does not own or have any residual interests in RH or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute RH's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell RHBuy RH
Strong Hold

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon RH has a Risk Adjusted Performance of 0.0521, Jensen Alpha of (0.14), Total Risk Alpha of (0.52), Sortino Ratio of 0.0521 and Treynor Ratio of 0.0809
Macroaxis provides advice on RH to complement and cross-verify current analyst consensus on RH. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure RH is not overpriced, please check all RH fundamentals, including its cash per share, beta, and the relationship between the revenue and cash flow from operations . Given that RH has a price to earning of 27.83 X, we recommend you to check out RH market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

RH Trading Alerts and Improvement Suggestions

RH had very high historical volatility over the last 90 days
Over 92.0% of the company shares are owned by institutional investors
Latest headline from talkmarkets.com: Stocks Static Even As Inflation Fears Fade

RH Returns Distribution Density

The distribution of RH's historical returns is an attempt to chart the uncertainty of RH's future price movements. The chart of the probability distribution of RH daily returns describes the distribution of returns around its average expected value. We use RH price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of RH returns is essential to provide solid investment advice for RH.
Mean Return
0.27
Value At Risk
-3.87
Potential Upside
5.45
Standard Deviation
3.46
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of RH historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

RH Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as RH is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading RH backward and forwards among themselves. RH's institutional investor refers to the entity that pools money to purchase RH's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of New York Mellon Corp2023-12-31
274.2 K
Dimensional Fund Advisors, Inc.2023-12-31
265 K
Citigroup Inc2023-12-31
251.6 K
Steadfast Capital Management Llc2023-12-31
248 K
Geode Capital Management, Llc2023-12-31
239 K
T. Rowe Price Investment Management,inc.2023-12-31
207.7 K
Amvescap Plc.2023-12-31
194.1 K
Stone House Capital Management, Llc2023-12-31
180 K
Goldman Sachs Group Inc2023-12-31
167.7 K
Fmr Inc2023-12-31
1.9 M
Vanguard Group Inc2023-12-31
1.4 M
Note, although RH's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

RH Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to RH or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that RH's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a RH stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.14
β
Beta against NYSE Composite3.24
σ
Overall volatility
3.55
Ir
Information ratio 0.04

RH Volatility Alert

RH currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of -0.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure RH's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact RH's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

RH Implied Volatility

RH's implied volatility exposes the market's sentiment of RH stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if RH's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that RH stock will not fluctuate a lot when RH's options are near their expiration.

RH Fundamentals Vs Peers

Comparing RH's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze RH's direct or indirect competition across all of the common fundamentals between RH and the related equities. This way, we can detect undervalued stocks with similar characteristics as RH or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of RH's fundamental indicators could also be used in its relative valuation, which is a method of valuing RH by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare RH to competition
FundamentalsRHPeer Average
Return On Equity0.52-0.31
Return On Asset0.0484-0.14
Profit Margin0.04 %(1.27) %
Operating Margin0.09 %(5.51) %
Current Valuation8.83 B16.62 B
Shares Outstanding18.22 M571.82 M
Shares Owned By Insiders18.85 %10.09 %
Shares Owned By Institutions91.54 %39.21 %
Number Of Shares Shorted1.82 M4.71 M
Price To Earning27.83 X28.72 X
Price To Book4.81 X9.51 X
Price To Sales1.79 X11.42 X
Revenue3.59 B9.43 B
Gross Profit1.81 B27.38 B
EBITDA830.72 M3.9 B
Net Income528.64 M570.98 M
Cash And Equivalents1.51 B2.7 B
Cash Per Share87.88 X5.01 X
Total Debt3.63 B5.32 B
Debt To Equity3.08 %48.70 %
Current Ratio3.39 X2.16 X
Book Value Per Share(16.28) X1.93 K
Cash Flow From Operations403.69 M971.22 M
Short Ratio4.13 X4.00 X
Earnings Per Share9.47 X3.12 X
Price To Earnings To Growth2.96 X4.89 X
Target Price307.0
Beta2.43-0.15
Market Capitalization5.41 B19.03 B
Total Asset5.31 B29.47 B
Retained Earnings539.99 M9.33 B
Working Capital1.63 B1.48 B
Current Asset1.31 B9.34 B
Note: Acquisition by Sternlicht Barry S of 5208 shares of RH subject to Rule 16b-3 [view details]

RH Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as RH . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About RH Buy or Sell Advice

When is the right time to buy or sell RH? Buying financial instruments such as RH Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total3.4B3.6B1.8B1.9B
Total Liabilities4.4B4.5B2.4B2.5B

Use Investing Ideas to Build Portfolios

In addition to having RH in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Software Thematic Idea Now

Software
Software Theme
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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When determining whether RH offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of RH's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rh Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rh Stock:
Check out RH Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in RH Stock please use our How to Invest in RH guide.
Note that the RH information on this page should be used as a complementary analysis to other RH's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Complementary Tools for RH Stock analysis

When running RH's price analysis, check to measure RH's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy RH is operating at the current time. Most of RH's value examination focuses on studying past and present price action to predict the probability of RH's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move RH's price. Additionally, you may evaluate how the addition of RH to your portfolios can decrease your overall portfolio volatility.
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Is RH's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RH. If investors know RH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RH listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.86)
Earnings Share
9.47
Revenue Per Share
152.366
Quarterly Revenue Growth
(0.04)
Return On Assets
0.0484
The market value of RH is measured differently than its book value, which is the value of RH that is recorded on the company's balance sheet. Investors also form their own opinion of RH's value that differs from its market value or its book value, called intrinsic value, which is RH's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RH's market value can be influenced by many factors that don't directly affect RH's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RH's value and its price as these two are different measures arrived at by different means. Investors typically determine if RH is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RH's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.