RH Should I Buy
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RH is not a strong buy for a beginner, long-term investor at this moment. While the company has shown some financial growth and continues to expand its luxury market presence, the technical indicators, insider selling trends, and mixed analyst sentiment suggest caution. The stock lacks strong positive catalysts and has no immediate trading signals to support a buy decision.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 37.012, and moving averages are converging, showing no clear trend. The stock is trading near a key support level of 192.89, with resistance at 202.379. Overall, the technical indicators suggest a weak trend with no immediate buy signal.
RH has released its 2026 Outdoor Sourcebook, which could enhance its luxury market positioning. The company is expanding its global reach and integrating hospitality experiences to improve customer loyalty. Financially, revenue, net income, and EPS have shown YoY growth in Q3 2026.
Insiders are selling heavily, with a 470.54% increase in selling activity over the last month. Analysts have mixed views, with several lowering price targets due to tariff pressures and weaker demand. Technical indicators show bearish momentum, and there is no strong trading signal from AI Stock Picker or SwingMax.
In Q3 2026, RH reported an 8.88% YoY increase in revenue to $883.81M, a 9.34% YoY increase in net income to $36.27M, and a 10.24% YoY increase in EPS to $1.83. However, gross margin dropped slightly by 0.92% YoY to 44.1%.
Analysts have mixed ratings on RH. While firms like Zelman and TD Cowen have raised price targets recently, others like Morgan Stanley, JPMorgan, and Barclays have lowered their targets, citing tariff pressures, weaker demand, and profitability concerns. The consensus remains cautious with no clear positive momentum.
