The company owns a Beta (Systematic Risk) of 1.9581, which implies a somewhat significant risk relative to the market. Let's try to break down what Rh Common's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Rh Common will likely underperform. Even though it is essential to pay attention to
Rh Common Stock existing
price patterns, it is always good to be careful when utilizing equity
price patterns. Our approach into forecasting any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Rh Common exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Rh Common Stock has an expected return of -0.27%. Please be advised to check Rh Common Stock
coefficient of variation,
semi variance,
price action indicator, as well as the
relationship between the
treynor ratio and
daily balance of power to decide if
Rh Common Stock performance from the past will be repeated in the future.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include RH income statement, its balance sheet, and the statement of cash flows. Potential RH investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although RH investors may use each financial statement separately, they are all related. The changes in RH's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on RH's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of RH
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of RH performance into the future periods or doing a reasonable stock valuation. The intrinsic value of RH shares is the value that is considered the true value of the share. If
the intrinsic value of RH is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares RH. Please read more on our
fundamental analysis page.
How effective is RH in utilizing its assets?
RH reports assets on its Balance Sheet. It represents the amount of RH resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, RH aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Homefurnishing Retail space. To get a better handle on how balance sheet or income statements item affect RH volatility, please check the breakdown of all its
fundamentals.
Are RH Earnings Expected to grow?
The
future earnings power of RH involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of RH factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. RH
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of RH
expected earnings.
RH Gross Profit
RH Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RH previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RH Gross Profit growth over the last 10 years. Please check RH's
gross profit and other
fundamental indicators for more details.
What is the case for RH Investors
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Rh Common is not uncomon. Institutional investors typically avoid acquiring a high percentage of Rh Common stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Rh Common is distributed among investors.
Ownership Allocation
Rh Common Stock secures a total of twenty-one million four hundred seventy thousand
outstanding shares. The majority of Rh Common Stock
outstanding shares are owned by
institutions. These other corporate entities are usually referred to as non-private investors looking to secure positions in Rh Common Stock to benefit from reduced commissions. Thus, outside corporations are subject to a different set of regulations than regular investors in Rh Common Stock. Please pay attention to any change in the institutional holdings of Rh Common as this could imply that something significant has changed or about to change at the company. Also note that around one million nine hundred thirty-two thousand three hundred invesors are currently shorting Rh Common expressing very little confidence in its
future performance.
| Insiders15.19% | Institutions93.52% |
| Retail Investors | -8.71 |
| Insiders | 15.19 |
| Institutions | 93.52 |
Rh Common has 89 percent chance to finish above $284 in July
The total risk alpha is down to -0.23 as of today. Rh Common Stock exhibits very low volatility with skewness of -0.53 and kurtosis of 0.4. However, we advise investors to further study Rh Common Stock technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rh Common's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rh Common's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Rh Common Implied Volatility
Rh Common's implied volatility exposes the market's sentiment of Rh Common Stock stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Rh Common's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Rh Common stock will not fluctuate a lot when Rh Common's options are near their expiration.
Our Takeaway on Rh Common Investment
While some other firms in the specialty retail industry are either recovering or due for a correction, Rh Common may not be performing as strong as the other in terms of long-term growth potentials. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Rh Common.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of RH. Please refer to our
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