Retail Furnishing stocks have been a hot area as new home sales have continued to grow in this low interest rate environment. While most of these Home Furnishers have been expanding sales through online digital channels, there's been one high-growth company that's making a name for themselves through expanding their brick and mortar presence.
We're talking about RH (formerly known as Restoration Hardware), a luxury home furnishings retailer with 70 RH Galleries and 39 outlet stores in 31 states. The company has positioned themselves as the go-to name for luxury furnishings, and their superior growth rate has attracted Warren Buffet, who initiated a position in the company in mid-November.
DAILY CHART OF RH (RH)
Over the weekend, Buffet's Berkshire Hathaway fund disclosed that they've added to their initial stake by 41% into year-end; that vote of confidence pushed the stock up by almost 6% on volume yesterday. The sharp rally propelled RH out of a 10-week base and it now appears poised for further upside.
While Buffet's investment in a publicly traded company can spark an initial interest, it's companies that have growth prospects, such as his Apple (AAPL) purchase in May 2016, that go on to trade much higher. RH may very well fit that profile, with its 10-year track record of improving revenues as well as a promising growth forecast going forward.
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Warmly,
Mary Ellen McGonagle,
