Analysts Praise Red-Hot RH Stock Ahead of Earnings

There is still a hefty amount of short interest as well

Deputy Editor
Sep 2, 2020 at 10:42 AM
facebook twitter linkedin


The shares of RH (NYSE:RH), formerly known as Restoration Hardware, have pulled back after a run-up to yesterday's record high of $345.46, despite a pair of bull notes from UBS and Wedbush, which hiked their price targets to $360 and $350, respectively. Wedbush expects strong second-quarter earnings results from RH, which are due out next week, as well as long-term growth, should demand remain high. At last check, RH is down 4.32% at $336.52

RH has seen an impressive climb higher since its March sell-off, quickly eclipsing its former peak at the $252 mark in June. Since then, the equity has strung together an impressive series of record highs, with support at the 10-day moving average. Currently, the stock is up 59.6% year-to-date. 

There is plenty of room for analysts to chime in with upgrades/price-target hikes as well, with eight of the 14 in coverage at a "strong buy," and the remaining six a "hold." Also, the 12-month consensus price target of $289.69 is a 15% discount to last night's close.

Meanwhile, though short interest has been dropping during the last two reporting periods, these bears still make up 25.14% of the stock's available float. In other words, the 4.37 million shares sold short would take over five days to cover at RH's average pace of trading. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners