What Caught Our Attention in the Investment World? – Week of June 27-July 1, 2022

By Kuldip K. Ambastha

The stock of RH (RH), a luxury lifestyle retailer perhaps better known by its former name of Restoration Hardware, had four negative return days and one positive return day in this past trading week. The worst day’s return was -10.6% per share, as seen on Thursday, June 30, 2022. The company has lowered its performance expectations for the near future, especially from the perspective of revenues. Less than ideal economic conditions and a potential recessionary environment in the USA have led to lessened demand for luxury items provided by retailers such as RH. Accordingly, the stock of RH may be in value trap or value play territory at the moment, depending on the prospects for recovery in the retail space going forward.

Keywords – RH, Restoration Hardware, luxury, lifestyle, retailer, retail, negative, positive, performance, revenues, economic, conditions, recessionary, recession, demand, value, trap, play, recovery.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in RH.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.




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