Is Now a Good Time to Buy RH Stock?
Luxury furniture retailer RH (NYSE: RH) reports its third-quarter results this week. Ahead of the report after market close on Thursday, many investors are likely wondering whether or not they should buy shares of the company, which has been expanding into the hospitality business recently and is planning to take its furniture overseas next year. After all, with shares down about 50% year to date, they look cheap.
Unfortunately, there's no way to know how the stock will trade following the earnings report. But what investors can do is assess some of the potential risks of owning the stock and consider whether or not shares appear attractive today as a long-term investment.
With RH trading at just 9 times earnings at the time of this writing, investors are clearly pricing in some tough times ahead. And tough times are likely coming. In the company's fiscal second-quarter letter to shareholders, management expressed a bleak view for the coming quarters.
Source Fool.com
