This Growth Stock Is Down 45% Since August: Time to Buy?
RH (NYSE: RH) investors have had a roller coaster of a year so far. The luxury home furnishings specialist was up over 50% at one point in 2023, but sentiment has shifted since early August. Shares are down 45% in that period and recently hit a new low for the year.
Drops of that magnitude usually reflect serious concerns on Wall Street about a business's fundamental growth prospects. But in some cases, these worries are overblown or simply too focused on short-term challenges. Let's take a closer look at RH to see whether the stock is an attractive buy at today's discounted prices.
It's true that the last earnings update contained some jarring figures. RH's sales plunged by 20% to $800 million from $992 million a year earlier. Profit margins contracted as well due to pressures from slowing consumer spending. Management sounded a cautious tone about the wider industry, too. "We continue to expect the luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year," executives said in a conference call with investors.
Source Fool.com
