Coronavirus recovery play RH (RH) continues to outperform the market. And on Monday, the luxury home furnishings chain’s IBD SmartSelect Composite Rating jumped to a near-perfect 98, out of 99, up from 92 the day before.
The revised score means the stock currently tops 98% of all other stocks in terms of key performance metrics and technical strength. It’s benefited as stay-at-home, work-from-home consumers have upgraded home furnishings.
RH Posts Double-, Triple-Digit Profit Growth
In Q4, the Corte Madera, Calif.-based company posted 36% earnings growth to $5.07 per share. The prior two quarters, EPS grew 53%, then 122%.
On March 24, RH reported that fourth quarter sales grew 22% to $812.4 million. Although still strong, that was down a bit from 25% growth the prior quarter.
RH, known for its elaborate showrooms, earns the No. 2 rank among its peers in the Retail-Home Furnishings industry group. Williams Sonoma (WSM) is the top-ranked stock within the group. Others in the top five include At Home (HOME) and Sleep Number (SNBR)
The stock sports a 97 EPS Rating, which means its recent quarterly and long-term annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
RH is currently extended beyond a proper buy zone after clearing the 410.59 entry in a consolidation. See if it forms a new buy opportunity like a three-weeks-tight pattern, or a rebound off its 50-day or 10-week line.
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