Checking the Overall Picture for RH (RH)

RH (NYSE:RH) is an interesting player in the Services space, with a focus on Home Furnishing Stores. The stock has been active on the tape, currently trading at $28.84, up from yesterday’s close by -0.55%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the space? Let’s take a look. RH (RH) currently trades with a market capitalization of $1.18B. That value represents a market adjusting for revenues that have been growing by 3.20% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RH, the company currently has $225.58M of cash on the books, which is offset by $760.92M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-28.83M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.65 on a per share basis this quarter.

Technical Analysis

It’s important to check the technicals to get a sense of how has been acting. Looking at the stock’s movement on the chart, RH recorded a 52-week high of 65.82. It is now trading 36.82 off that level. The stock is trading 32.82 its 50-day moving average by 3.82. The stock carved out a 52-week low down at 24.75.

In recent action, RH (RH) has made a move of -5.16% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 72.61, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 38.37M with 55.75% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RH.

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