RH, together with its subsidiaries, operates as a retailer in the home furnishings and operates under RH Galleries and RH brand names in the District of Columbia and Canada, as well as Waterworks showrooms throughout the United States and the United Kingdom. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com, and Source Books, a series of catalogs. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

RH looks like a company with strong revenue and decent gross margin, but a very heavy balance sheet structure and weak liquidity. TTM revenue of around $800 million remains above the industry median, but the trend over recent periods has been rather declining, which limits confidence in sustainable growth. Gross margin of 44.0% and operating margin of 10.7% look solid and even better than the industry median, but net margin of 3.0% is noticeably weaker, and TTM net income is effectively absent. EPS and forward EPS have moved into negative territory, which is an important signal of deteriorating earnings quality and increases the risk of downward revisions to expectations. At the same time, P/E, P/S, and P/FCF remain above industry medians, meaning the market is still not paying cheaply for a business with deteriorating earnings. P/B is especially concerning at an extreme level, which, combined with very low equity, points to a distorted valuation base and high financial leverage. Debt-to-capital and long-term debt remain very high, while a quick ratio of 0.32 and a current ratio of 1.19 show limited liquidity buffer. ROA and ROI are below industry benchmarks, indicating weak efficiency in the use of assets and invested capital. ROE is formally very high, but against the backdrop of minimal equity and heavy debt burden, this figure does not look like a reliable indicator of quality. Positive factors include asset growth and a recovery in shareholders’ equity from negative territory, but this is still not enough to offset pressure from debt and weak profitability. The company pays no dividend, so there is no support for the valuation through yield. Overall, the fundamentals rather justify a cautious approach: the business retains operating margin and scale, but the balance sheet, profitability, and valuation multiples do not yet provide grounds for an aggressive increase in the target price.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос

RH has strong gross and operating margins, but weak profitability, liquidity, and debt burden; the valuation remains stretched due to a high P/B and negative EPS.

Key Points
Mark S. Demilio disposed of 2,445 shares for $412,000 on July 10, 2026.
The transaction reduced the total equity position by 4%.
The disposal was executed indirectly through The Mark S. Demilio Revocable Trust.
The sale occurred as shares of the home furnishings retailer recorded a -23% one-year return as of the transaction date.
Director Mark S. Demilio reported a sale of 2,445 shares of RH (NYSE:RH) on July 10, 2026, according to an SEC Form 4 filing.
Transaction summary
Shares sold (indirectly held)
2,445
Transaction value
~$412,000
Post-transaction shares
57,698
Post-transaction shares (directly held)
12,593
Post-transaction shares (indirectly held)
45,105
Post-transaction value
$9.54 million
Key questions
What was the impact of this transaction on the director's total equity exposure?
The sale of 2,445 shares represented 5% of the indirect holdings and 4% of the total equity position. Following the transaction, the aggregate stake decreased from 60,143 shares to 57,698 shares.
How is the remaining ownership structured across different entities?
The current position is divided between 12,593 shares held directly and 45,105 shares held indirectly. The indirect holdings are distributed between The Mark S. Demilio Revocable Trust, which holds 25,680 shares, and The Theresa E. Demilio 2012 Family Trust, which holds 19,425 shares.
How did the execution price compare to the market valuation on the date of the trade?
The transaction was executed at a weighted average price of $168.44 per share, which was a premium to the $165.35 market close recorded on the July 10, 2026 transaction date.
What is the company's current market scale and recent financial profile?
As of the July 10 market close, the company had a market capitalization of $3.1 billion. In the trailing 12 months, the firm generated $3.4 billion in revenue and $103.1 million in net income.
Company Overview
Share Price (as of market close 2026-07-10)
$165.35
Market Capitalization
$3.1 billion
Revenue (TTM)
$3.4 billion
Net Income (TTM)
$103.1 million
Company Snapshot
RH operates as a specialized home furnishings retailer offering an extensive portfolio that includes furniture, lighting, textiles, bathware, decor, outdoor and garden essentials, and specialized furnishings for children and teens.
The company generates revenue through a diversified omnichannel distribution model encompassing distinctive retail galleries, curated Source Books catalogs, and a comprehensive digital platform.
RH targets affluent consumers seeking premium home furnishings and design solutions, positioning itself as a curator of high-end residential and lifestyle products.
RH is a prominent specialty retailer in the consumer cyclical sector with a market capitalization of $3.1 billion. The company has generated $3.4 billion in TTM revenue with net income of $103.1 million, reflecting its position as a significant player in the premium home furnishings market. RH's competitive advantage derives from its curated product selection, distinctive retail experience across multiple channels, and strong brand positioning in the high-end home furnishings segment.
What this transaction means for investors
Demilio trimmed a small block from his indirect holdings and still controls 57,698 shares split across a revocable trust, a family trust, and a direct stake. A long-tenured director shaving 4% off a position mostly held in trust vehicles is the kind of estate-planning move that says nothing about where RH is headed. Worth a small note, though: there's no 10b5-1 plan mentioned, so the timing was discretionary, and he did sell at $168.44, a premium to that day's close.
Coincidentally enough, CEO Gary Friedman reported the sale of “a small portion” of his common stock — 24% of his holdings — earlier this month, prompting a release from the company, which said the move was to help fund improvements to personal residences and the repayment of debt. Shares surged nearly 8% on Tuesday (just four days after the transaction), so it’s clear the stock is in a volatile position, with shares still down about 14% in the year ending Tuesday.
The business is in a similarly tricky but improving spot. Fiscal first-quarter revenue slipped 1.7% to $800.3 million, hurt by roughly $45 million in tariff-related backorders, but RH raised its full-year outlook to 4.5% to 8% revenue growth. Friedman told investors he expects growth to accelerate from roughly flat in the first half to around 12% in the second half as backlog clears. For long-term investors, the insider sale is minor. The real questions are whether that second-half acceleration shows up, and whether RH's debt-heavy balance sheet can carry its costly international expansion.
Should you buy stock in RH right now?
Before you buy stock in RH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 14, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH Director Sells $412,000 in Stock After CEO's Big Sale — Here's What Investors Should Know

Key Points
Williams-Sonoma generates consistently higher overall revenue than RH across the observed periods.
Williams-Sonoma experiences significant quarter-over-quarter volatility in revenue the past two years, while RH maintains a more stable trend.
Investors should watch whether the revenue gap between the two companies continues to follow this historical pattern or begins to shift.
Top retail brands have struggled to grow revenue amid inflation and soft consumer spending over the past few years. This has particularly weighed on growth in home goods and furnishings. Despite these headwinds, shares of Williams-Sonoma (NYSE:WSM) have outperformed RH (NYSE:RH).
Here’s a look at how these retail companies compare on revenue performance, and which could be the better bet beyond 2026.
Williams-Sonoma: Navigating Seasonal Revenue Cycles
Williams-Sonoma functions as a specialized, multi-channel retailer offering a diverse array of home products. While managing a product recall and launching a new brand for dorm rooms, the company reported an approximately 13% net income margin for the quarter ended May 3, 2026.
RH: Maintaining Flat Revenue Trends
RH operates as a retailer specializing in home furnishings through its retail galleries, catalogs, and online platforms. While opening new international gallery locations in Milan and London, it reported an EBIT margin of approximately 4% for the quarter ended May 2, 2026.
Why Revenue Matters for Retail Investors
Revenue is the most fundamental measure of a company’s performance. Investors can easily track it over time to measure a business’s overall scale and demand, which can be very helpful when comparing it with others in the same industry.
Quarterly Revenue for Williams-Sonoma and RH
Q3 2024
$1.8 billion (period ended July 2024)
$829.7 million (period ended Aug. 2024)
Q4 2024
$1.8 billion (period ended Oct. 2024)
$811.7 million (period ended Nov. 2024)
Q1 2025 (Jan. 2025)
$2.5 billion
$812.4 million
Q2 2025
$1.7 billion (period ended May 2025)
$814.0 million (period ended May 2025)
Q3 2025
$1.8 billion (period ended Aug. 2025)
$899.2 million (period ended Aug. 2025)
Q4 2025
$1.9 billion (period ended Nov. 2025)
$883.8 million (period ended Nov. 2025)
Q1 2026
$2.4 billion (period ended Feb. 2026)
$842.6 million (period ended Jan. 2026)
Q2 2026
$1.8 billion (period ended May 2026)
$800.3 million (period ended May 2026)
Data source: Company filings. Data as of July 13, 2026.
Foolish Take
Macroeconomic headwinds, including higher prices and interest rates, have weighed on both companies’ revenue growth. However, Williams-Sonoma has managed to convert a higher percentage of its revenue into net income, boosting its share price. RH hasn’t fared as well on the margin front, which has tanked its stock price.
A near-term catalyst for Williams-Sonoma is near-term market share gains and continued momentum in comparable store sales growth. Comp sales, which measure performance excluding new stores, grew 4.8% year over year last quarter. This looks particularly strong in an overall weak market for home goods.
RH hasn’t been able to maintain its margins, but it has a history of earning above-average retail margins in a healthy home furnishings market. This is noteworthy given management’s forward guidance. It now expects full-year revenue to grow 4.5% to 8%, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reaching the mid-teens.
Both stocks are trading at a similar forward price-to-earnings multiple of about 24. However, analysts expect RH to post earnings growth of approximately 16% annualized over the next two years, compared to just 7% for Williams-Sonoma. This could make RH stock the better buy right now.
RH will need to execute. It needs to meet guidance in revenue growth and margins. Long term, RH’s international expansion efforts might be the catalyst that narrows its revenue gap with Williams-Sonoma, potentially leading to superior returns for shareholders.
Should you buy stock in Williams-Sonoma right now?
Before you buy stock in Williams-Sonoma, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Williams-Sonoma wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Williams-Sonoma. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Williams-Sonoma vs. RH: Which Retail Stock Is the Better Buy Right Now?

In trading on Monday, shares of RH (Symbol: RH) crossed below their 200 day moving average of $297.46, changing hands as low as $291.08 per share. RH shares are currently trading down about 4.1% on the day. The chart below shows the one year performance of RH shares, versus its 200 day moving average:
Looking at the chart above, RH's low point in its 52 week range is $227 per share, with $406.38 as the 52 week high point — that compares with a last trade of $292.14.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Funds Holding AKTS
TSCO market cap history
MATX Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH Shares Cross Below 200 DMA

As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
At RH, a filing with the SEC revealed that on Monday, Carlos Alberini bought 11,388 shares of RH, for a cost of $160.90 each, for a total investment of $1.83M. So far Alberini is in the green, up about 6.9% on their buy based on today's trading high of $172.00. RH is trading up about 3.4% on the day Thursday.
And at GitLab, there was insider buying on Tuesday, by Chief Executive Officer William Staples who purchased 4,188 shares at a cost of $29.36 each, for a trade totaling $122,960. Before this latest buy, Staples bought GTLB at 2 other times during the past twelve months, for a total investment of $253,092 at an average of $27.26 per share. GitLab is trading up about 2% on the day Thursday. So far Staples is in the green, up about 10.5% on their purchase based on today's trading high of $32.44.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday 7/2 Insider Buying Report: RH, GTLB

Key Points
Home Depot maintains a dominant position in the professional contractor and DIY markets with over $164 billion in annual revenue.
RH is transforming into a global luxury lifestyle brand by expanding into hospitality and high-end international retail galleries.
Which of these home-focused retailers is the better fit for your portfolio as the housing market evolves in 2026?
Deciding between a reliable home improvement giant and a high-end luxury disruptor depends on your appetite for risk and growth. Here is how Home Depot (NYSE:HD) and RH (NYSE:RH) stack up today.
Home Depot dominates the broad DIY and professional markets with massive scale, while RH targets the affluent luxury lifestyle segment through international expansion and hospitality. Investors compare them because both rely on the health of the retail sector and broader housing trends to drive sales growth.
The case for Home Depot
Home Depot operates as a home improvement specialty retailer serving DIY customers and professional contractors, such as renovators and trade professionals. The business supports these groups through an interconnected network of stores and digital platforms across North America. These moves help the company capture more share among retail stocks by targeting complex project needs through its acquisitions of SRS and GMS.
In FY 2025, revenue reached nearly $164.7 billion, representing growth of approximately 3.2% over the previous year. Net income for the fiscal period was close to $14.2 billion. This figure was slightly lower than the roughly $14.8 billion recorded in FY 2024, reflecting a slight contraction in net margin from 9.3% to 8.6%.
As of its February 2026 balance sheet, the debt-to-equity ratio is approximately 5.1x, meaning total debt, including short-term and long-term borrowings, is 5.1 times the value of shareholder equity. The current ratio, which measures a company's ability to cover short-term debts with short-term assets, is roughly 1.1x. Free cash flow, calculated as cash flow from operations minus capital expenditures, was nearly $12.6 billion during the year.
The case for RH
RH functions as a luxury lifestyle brand, offering high-end home furnishings through a unique ecosystem of galleries and sourcebooks. The company is actively expanding its international footprint and diversifying into hospitality experiences like restaurants and luxury guesthouses. These initiatives aim to transform the brand into a comprehensive luxury lifestyle provider that serves a high-end consumer base and professional interior designers.
For FY 2025, revenue reached $3.4 billion, indicating growth of about 8.1% compared to the prior year. Net income reached approximately $124.8 million during the same period. This was an increase from the roughly $72.4 million in net income reported for FY 2024, showing progress in the company's turnaround efforts.
As of its January 2026 balance sheet, the debt-to-equity ratio is roughly 65.5x, meaning total debt, including short-term and long-term borrowings, is much higher than shareholder equity. The current ratio, which also measures the ability to pay short-term debts with current assets, is approximately 1.2x. Free cash flow, defined as cash flow from operations minus capital expenditures, reached close to $252.4 million.
Risk profile comparison
Home Depot faces intense competition from digital retailers like Amazon and must adapt to shifting consumer preferences and shopping habits. The company also deals with high sensitivity to housing market volatility and shifting tariff policies that affect commodity costs.
RH manages significant execution risks as it develops hospitality concepts and expands into complex real estate projects internationally. The business also carries substantial financial leverage and depends on foreign manufacturing in Asia, which exposes it to supply chain disruptions and trade duties.
Valuation comparison
RH carries a higher forward P/E, which measures price against future earnings estimates, while its P/S ratio compares market value to sales.
Forward P/E
23.3x
32.3x
28.6x
P/S ratio
2.1x
0.9x
N/A
Which stock would I buy in 2026?
Home Depot and RH both depend on the demand trends of the housing sector, which tend to be cyclical and tied closely to interest rates. High interest rates and inflation pressure have challenged both stocks, with Home Depot down about 3% over the last year on a total return basis and RH losing a larger 17%, as of July 1. Over the past five years, Home Depot has returned a gain of 25% while RH has demonstrated an even steeper decline: down 76%. While past results don’t guarantee future performance, the disparity points to the key ideological difference between Home Depot and RH stocks.
Home Depot has long been cited as a relatively safe investment — catering to both retail customers and professional contractors, enjoying a wide geographic reach within the U.S., and paying a 2.64% dividend that rewards patient investors. Indeed, without the dividend reinvested, Home Depot’s five-year performance drops to just shy of a 10% gain. It’s probably a better bet than RH for investors who are looking for stability and income, but it’s unlikely to deliver blockbuster results.
The case for RH is similar to that of American Express: It caters to a wealthier, more exclusive clientele that tends to have more consistent and higher spending regardless of economic conditions. Its luxury brand is its own kind of moat, and it’s still in growth mode, taking on substantial debt now to build a brand that could pay off big-time down the road. If you’re willing to bet on the story, it could be an attractive time to buy in, but the future appears murky and isn’t without risk.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,890!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,196,664!*
Now, it’s worth noting Stock Advisor’s total average return is 902% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 1, 2026.
American Express is an advertising partner of Motley Fool Money. Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, American Express, and Home Depot. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Home Depot vs. RH: Which Consumer Stock Is a Better Buy in 2026?

Key Points
The RealReal dominates the luxury resale market through a proprietary authentication process and a growing member base of over 40 million.
RH is successfully transforming into a luxury lifestyle brand by integrating high-end galleries with hospitality and international expansion.
Which luxury-focused stock is the better choice for your portfolio as the circular economy scales?
As the circular economy meets high-end retail, investors are weighing the explosive growth of resale against the established prestige of legacy showrooms. Choosing between The RealReal (NASDAQ:REAL) and RH (NYSE:RH) requires balancing distinct luxury strategies.
RealReal operates a leading online marketplace for authenticated luxury resale, focusing on a circular economy for high-fashion goods. Rh is a luxury home furnishings retailer that is expanding into hospitality and global galleries. Both companies compete for the disposable income of affluent consumers but operate with very different financial structures.
The case for The RealReal
The RealReal is a dominant player in the authenticated resale market, positioned among luxury brand stocks by offering consumers a way to buy and sell pre-owned designer items. The company serves a dual customer base of consignors and buyers, focusing on trust through physical authentication of high-end brands such as Cartier, Chanel, and Louis Vuitton. By operating a mix of online platforms and physical retail stores, the business captures the growing demand for sustainable, circular luxury consumption among younger shoppers.
In FY 2025, revenue reached nearly $692.8 million, indicating a growth rate of roughly 15.4% over the previous year. Despite this growth, the company reported a net loss of approximately $41.8 million for the period. This resulted in a net margin of -6.0%, which shows the company is still working toward consistent profitability as it scales its marketplace operations.
As of its December 2025 balance sheet, the debt-to-equity ratio is -1.1x, indicating that total liabilities exceed shareholder equity. The current ratio, which measures the ability to pay short-term obligations with short-term assets, is roughly 0.9x.
The case for RH
RH has evolved from a furniture retailer into a comprehensive luxury lifestyle brand that serves affluent consumers through an integrated platform of Design Galleries and hospitality offerings. The company manages a unique membership program that drives customer loyalty and serves professional interior designers through its Trade and Contract channels. By opening expansive galleries in major global cities and adding restaurants to its retail footprint, the company creates an immersive brand experience that separates it from traditional home goods stores.
In FY 2025, revenue reached approximately $3.4 billion, up approximately 8.1% from the prior fiscal year. The company reported a net income of nearly $124.8 million for the same period. This resulted in a net margin of roughly 3.6%, representing the percentage of total sales remaining as profit after all business costs are paid.
As of its January 2026 balance sheet, the current ratio is approximately 1.2x, showing its ability to meet short-term debt obligations with its current assets. The debt-to-equity ratio, which compares total debt to shareholder equity, is 65.5x. Free cash flow, the cash left over after subtracting capital expenditures from cash from operations, reached nearly $252.4 million during the fiscal year.
Risk profile comparison
The RealReal faces significant risks of losses, having accumulated a deficit of nearly $1.295 billion. The business model relies entirely on the accuracy of its authentication process, and any failure to detect counterfeits could destroy customer trust. Additionally, the company faces intense competition from established platforms like eBay (NASDAQ:EBAY), and recent insider selling may contribute to stock price volatility.
RH faces risks from its aggressive expansion into international markets and from new concepts such as hospitality, which add operational complexity. The company is highly sensitive to the high-end housing market and broader economic conditions that affect affluent consumers. Furthermore, its heavy reliance on foreign sourcing and the leadership of CEO Gary Friedman represents a significant concentration of operational risk compared to competitors like Williams-Sonoma (NYSE:WSM).
Valuation comparison
While RealReal is priced for rapid expansion, RH currently appears to be the more value-oriented option, given its much lower P/S ratio and more established earnings profile.
Forward P/E
187.0x
29.9x
29.6x
P/S ratio
4.7x
0.8x
Sector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
The RealReal and RH both target affluent customers with their luxury-oriented merchandise, but they approach the business in very different ways. One capitalizes on the growing demand for luxury resale clothing and accessories, while the other sells new home furnishings and décor. And like their customer base, they also attract different types of investors.
The RealReal operates an online marketplace for authenticated luxury goods on consignment. The demand for such pre-owned products remains strong, particularly among younger consumers. While this is a very specific market niche, it still faces competition from other resale platforms such as eBay, ThredUp, and Poshmark. And much of its competitive advantage relies on the accuracy of its authentication service. Still, it has been improving its operating efficiency and growing revenue.
RH, formerly known as Restoration Hardware, remains a respected luxury home furnishings brand. But it has been challenged recently by a soft housing market and tariffs on its imported goods. It has also been spending a lot on expansion into international sales and marketing its products to the hospitality industry. Investors may need patience as they wait for that strategy to produce long-term growth.
Both companies may be attractive to investors seeking exposure to the luxury goods market. However, The RealReal seems to be a better choice today due to its improving financial performance and growing customer base.
Should you buy stock in RealReal right now?
Before you buy stock in RealReal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RealReal wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $424,531!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,273,016!*
Now, it’s worth noting Stock Advisor’s total average return is 940% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 17, 2026.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Williams-Sonoma and eBay. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The RealReal vs. RH: Which Consumer Stock Is a Better Buy in 2026?

For Immediate Release
Chicago, IL – June 15, 2026 – Zacks Equity Research shares Caterpillar CAT as the Bull of the Day and RH RH as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology MU and NVIDIA Corp. NVDA.
Here is a synopsis of all four stocks.
Zacks Rank #1 (Strong Buy) company Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
Since 1925, Caterpillar’s product portfolio has evolved and boasts 20 brands and generated revenues of $67.6 billion in 2025. It has more than 4 million products with an extensive dealer network of 156 dealers spanning 190 countries.
Caterpillar started using telematics in the 1990s and reached its target of 1 million connected assets in 2019. It currently has more than 1.5 million connected assets. The combination of innovation, and cutting-edge technology, coupled with the formidable reputation, set Caterpillar apart from its peers.
Benefitting from the AI Data Center Boom
The artificial intelligence and cloud computing boom has transformed this legacy industrial giant into a crucial "picks and shovels" player for the physical layer of the AI revolution. The defining challenge for hyperscale AI data centers is securing enough electrical power, and connecting a massive campus to the traditional utility grid can take years due to regulatory hurdles, transmission line shortages, and grid capacity constraints.
To bypass these delays, data center developers are increasingly choosing to skip the grid entirely or build decentralized, on-site power infrastructure to accelerate their time to market, which has sparked an unprecedented surge in demand for Caterpillar's Energy & Transportation segment. Developers are deploying massive arrays of Caterpillar's natural gas and diesel reciprocating engines, as well as industrial gas turbines through its Solar Turbines subsidiary, to generate electricity directly on-site and provide the continuous, high-output baseload reliability that compute-heavy AI workloads demand.
Record Backlog Provides Future Revenue Visibility
Caterpillar’s backlog rose to a record $63 billion at the end of first-quarter 2026, up 79% year over year, supported by all three primary segments and all-time record order intake. Management raised its full-year 2026 outlook to low double-digit sales compared with the earlier expectation of growth near the upper end of its long-term 5-7% CAGR target. The company also expects services revenue growth for the year.
Notably, the company also updated its previously provided long-term target provided at its investor day of CAGR of 5-7% through 2030 to 6-9%. In North America, demand from residential and non-residential construction should support Caterpillar’s construction equipment sales in the long run. U.S. infrastructure investment in roads, bridges, airports and waterways remains an opportunity for Caterpillar given the breadth of its construction portfolio.
Increased construction activity will also support demand in EAME and Latin America. Caterpillar plans to increase Construction Industries’ sales to users to 1.25x by 2030, compared to 2024. Meanwhile, Zacks Consensus Estimates suggest double-digit EPS growth through next year.
Mining Cycle Support and Autonomous Expansion
Miners are bringing radical changes to mining operations to increase productivity, reduce cost and improve frontline safety and are, thus, increasingly relying on autonomous systems. Electric vehicle demand is also boosting demand for commodities. The intensifying global focus on shifting from fossil fuels to zero emissions will require a huge number of commodities, which in turn, will boost demand for Caterpillar’s mining equipment.
Also, favorable trends in commodity prices bode well for mining equipment demand. Caterpillar is enhancing its autonomous capabilities and bringing innovative products into the markets to capitalize on this demand. Caterpillar acquired RPMGlobal in February 2026, expanding its portfolio of data-driven mining technology and software solutions that help customers plan, operate and manage their sites more efficiently. This aligns with the company’s broader autonomy roadmap. The company plans to triple the number of autonomous trucks in Resource Industries from 2025 levels by 2030.
Bullish Technical Set Up
CAT shares are retreating to the rising 50-day moving average, offering a high probability reward-to-risk zone.
Bottom Line
Caterpillar is exceptionally positioned for sustained long-term growth as a global economic bellwether.
Zacks Rank #5 (Strong Sell) company RH is a leading luxury retailer in the home furnishing space. The company offers dominant merchandise assortments across a growing number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware and child and teen furnishings.
RH’s business is fully integrated across its multiple channels of distribution, consisting of stores, Source Books and websites. RH positions its Galleries as showrooms for its brand, while websites and Source Books act as virtual extensions of its physical spaces. RH has an integrated RH Hospitality experience in ten of the Design Gallery locations, which include restaurants and wine bars.
RH Faces Tariff Uncertainty & Rising Cost Pressures
RH faces significant headwinds from tariffs that continue to disrupt operations and weigh on financial visibility. With about 16 different tariff announcements over the past 10 months, RH has been facing significant resourcing challenges, product delays and out-of-stocks, along with multiple rounds of price negotiations and increases.
Tariff-related resourcing has also impacted key categories such as furniture, lighting and rugs, which are more complex to shift across manufacturing locations. The elevated tariffs of 50% on imported steel and aluminum, with a new investigation into furniture imports, burden the company’s cost structure. These cost burdens not only threaten margins but also create timing distortions in revenue recognition. In the fourth quarter of fiscal 2025, tariffs remained a key driver of margin pressure, with an impact of around 90 basis points.
RH: Dependent on Housing Market
RH and other industry peers are highly dependent on housing market demand. The housing industry is cyclical and affected by consumer confidence levels, prevailing economic conditions and interest rates. The federal government’s actions related to economic stimulus, taxation and borrowing limits could affect consumer confidence and spending levels, which could hurt both the economy and the housing market.
Bottom Line
While RH maintains a sophisticated, fully integrated luxury brand identity and continues to innovate through its unique blend of retail and hospitality, its near-term outlook is increasingly challenged by external economic pressures. The convergence of persistent tariff burdens, supply chain bottlenecks, and an unpredictable, interest-rate-sensitive housing market presents a demanding operating environment. Moving forward, RH's ability to maintain its premium margins and sustain revenue growth will heavily depend on how effectively it navigates these macroeconomic headwinds and mitigates ongoing cost volatility.
Additional content:
Micron vs. NVIDIA: One AI Stock Is a Clear Buy Right Now
Riding the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology outpaced Jensen Huang-led NVIDIA Corp. over the past year, rising 761.5% compared to NVIDIA’s 44.3%. Let us thus see how both companies performed and whether Micron holds an investment edge over NVIDIA –
The Bullish Case for MU Stock
Micron reported revenues of $23.86 billion in the fiscal second quarter of 2026 and expects revenues to improve further to $33.5 billion in the fiscal third quarter, according to investors.micron.com. As hyperscalers increase their spending on AI infrastructure, Micron’s advanced high-bandwidth memory (“HBM”) chips are witnessing high demand, supporting revenue growth.
The present supply-demand imbalance in HBM chips gives Micron strong pricing power and underpins a strong long-term growth outlook. Nonetheless, the HBM chips are in demand due to their capability to manage complex workloads while delivering improved power efficiency.
Also, constrained supply in NAND flash chips is expected to continue through the middle of next year, which could further boost margins. Micron expects a solid gross margin of around 81% for the fiscal third quarter of 2026, showcasing strong financial momentum.
The Bullish Case for NVDA Stock
NVIDIA’s latest strong Data Center performance demonstrated its position as a leader in hyperscale AI infrastructure investment worldwide. In the fiscal first quarter of 2027, NVIDIA’s Data Center segment generated a record $75.2 billion in revenues, up 92% year over year and 21% sequentially, according to nvidia.news.nvidia.com.
NVIDIA reported revenues of $81.6 billion in the fiscal first quarter of 2027, a new record, up 85% from a year ago and 20% sequentially. Despite its massive size, NVIDIA’s revenues continue to grow, driven by strong demand for its cutting-edge AI chips, networking solutions, and data center infrastructure that support large-scale AI training and inference workloads. NVIDIA projects fiscal second-quarter of 2027 revenues of $91 billion, plus or minus 2%.
Additionally, NVIDIA continues to deliver strong margins, reflecting its pricing power in graphics processing units (GPUs) and AI accelerators, while maintaining sustained demand for its products across the AI and data center markets. For the fiscal first quarter of 2027, NVIDIA’s non-GAAP gross margin was 75%, and is expected to remain near 75% for the fiscal second quarter of 2027, a tell-tale sign that the company is capable of maintaining strong profitability.
Micron Has the Edge: Why It’s a Better AI Buy Than NVIDIA Now
Strong AI-infrastructure demand is currently driving the bullish outlook for both Micron and NVIDIA. However, Micron appears to offer a more attractive valuation than NVIDIA at the current levels.
Per the price/earnings ratio, MU trades at 16.65 forward earnings compared with NVDA’s forward earnings multiple of 22.97. Since NVIDIA trades at a premium valuation, the company needs to deliver strong growth to justify further upside. On the other hand, Micron can outperform through steady and sustainable earnings growth.
Additionally, Micron is no longer viewed as a traditional cyclical memory company; it has elevated itself to become a key supplier in the AI infrastructure ecosystem. Micron has sold a significant amount of its HBM capacity through 2026 amid strong AI-driven demand. The HBM supply constraint has given the company a strong pricing power, boosting profit margins, improving revenue visibility and creating further upside potential for the stock.
In contrast, much of NVIDIA’s strong quarterly performance already appears reflected in its share price, and the ongoing China-related export curbs could create pressure on future growth. Therefore, currently Micron looks like the more compelling investment opportunity.
While Micron has a Zacks Rank #1 (Strong Buy), NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Caterpillar and RH have been highlighted as Zacks Bull and Bear of the Day

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RH (RH) Q1 2026 Earnings Call Transcript

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Coherent Corp (Symbol: COHR), where a total of 32,203 contracts have traded so far, representing approximately 3.2 million underlying shares. That amounts to about 53.2% of COHR's average daily trading volume over the past month of 6.0 million shares. Particularly high volume was seen for the $470 strike call option expiring June 18, 2026, with 2,190 contracts trading so far today, representing approximately 219,000 underlying shares of COHR. Below is a chart showing COHR's trailing twelve month trading history, with the $470 strike highlighted in orange:
Qualcomm Inc (Symbol: QCOM) saw options trading volume of 131,671 contracts, representing approximately 13.2 million underlying shares or approximately 52.7% of QCOM's average daily trading volume over the past month, of 25.0 million shares. Particularly high volume was seen for the $155 strike put option expiring July 17, 2026, with 5,228 contracts trading so far today, representing approximately 522,800 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $155 strike highlighted in orange:
And RH (Symbol: RH) saw options trading volume of 4,502 contracts, representing approximately 450,200 underlying shares or approximately 52% of RH's average daily trading volume over the past month, of 866,465 shares. Particularly high volume was seen for the $165 strike call option expiring June 12, 2026, with 1,148 contracts trading so far today, representing approximately 114,800 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for COHR options, QCOM options, or RH options, visit StockOptionsChannel.com.
Further COHR Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: COHR, QCOM, RH

RH RH is scheduled to report its first-quarter fiscal 2026 (ended May 2, 2026) results on June 11, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share of $1.53 missed the Zacks Consensus Estimate of $2.21 by 30.8%. The reported figure decreased slightly by 3.2% from $1.58 in the year-ago period. Net revenues of $842.6 million also lagged the consensus mark of $872 million but improved 3.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was positive 46.5%.
How Are Estimates Placed for RH Stock?
The Zacks Consensus Estimate for the fiscal first quarter indicates a loss of $2.07 per share, which has remained unchanged over the past 30 days. In the year-ago period, the company reported earnings of 13 cents per share.
The consensus estimate for revenues is pegged at $791.6 million, indicating a 2.7% year-over-year decline.
RH Price and EPS Surprise
Factors Likely to Have Shaped RH’s Q1 Performance
Assessing the Sales Environment: RH’s fiscal first-quarter revenue performance is likely to have been pressured by continued weakness in the U.S. housing market, which management has described as one of the most difficult environments in decades for home-related spending. Elevated mortgage rates and macroeconomic uncertainty may have weighed on furniture demand, particularly for larger discretionary purchases. Management guided for first-quarter fiscal 2026 revenue growth of negative 2% to negative 4%, reflecting expectations for a soft demand environment.
Despite these headwinds, several company-specific initiatives may have provided support. RH entered fiscal 2026 with momentum from market-share gains and revenue growth that outpaced many industry peers. The company continued to benefit from its luxury positioning, expansive gallery network and integrated hospitality model, which help drive customer engagement and brand awareness. Management also remained optimistic about growth opportunities tied to new gallery concepts and international expansion efforts.
However, the quarter is likely to have seen limited contribution from RH Estates, the company’s new traditional luxury furnishings concept. Management indicated that major launch activities would occur during the second quarter, with meaningful revenue benefits expected later in the year.
Factors Affecting Profitability: Profitability is expected to have remained under pressure during the quarter. RH forecasted a fiscal first-quarter adjusted EBITDA margin of 5.5% to 6.5%, substantially below its longer-term targets. A major factor is the elevated level of pre-opening and startup expenses tied to international expansion initiatives, including RH Milan and RH London. Management estimated that these costs alone would reduce first-quarter adjusted EBITDA margin by roughly 420 basis points.
Tariff-related costs and supply-chain adjustments are likely to have been another challenge. During the fourth-quarter earnings discussion, management noted that tariff-related sourcing transitions had already created operational disruptions and margin pressure. Continued investments in global expansion, product development and the upcoming RH Estates launch were also expected to weigh on earnings in the near term.
Overall, RH’s fiscal first-quarter results are expected to reflect a balance between near-term macroeconomic pressures and substantial investments intended to strengthen the company’s long-term growth platform.
What the Zacks Model Says for RH
Our proven model does not conclusively predict an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Williams-Sonoma’s WSM first-quarter fiscal 2026 earnings topped the Zacks Consensus Estimate by 7.2%, while net revenues met the same at $1.81 billion. Year over year, both metrics grew 4.3% and 4.4%, respectively, owing to the broad-based comparable growth across brands and channels and steady earnings delivery.
For fiscal 2026, WSM expects annual net revenues to increase in the range of 2.7-6.7%, with comparable brand revenue growth (comps) in the range of 2-6%. WSM also continues to project an operating margin between 17.5% and 18.1% for the year.
Lowe’s LOW reported first-quarter fiscal 2026 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate. Adjusted earnings were $3.03 per share, rising 3.8% year over year and beating the Zacks Consensus Estimate of $2.96 by 2.4%. Net sales came in at $23.1 billion, rallying 10.3% from the year-ago quarter and surpassing the consensus mark of $22.9 billion by 0.6%.
Lowe’s reaffirmed its fiscal 2026 guidance and expects total sales between $92 billion and $94 billion, indicating year-over-year growth of 7-9%. Comparable sales are anticipated to be flat to up 2%. The company expects the adjusted operating margin to be 11.6-11.8%. Lowe’s expects EPS of $11.75-$12.25 and adjusted EPS of $12.25-$12.75.
The Home Depot Inc.’s HD first-quarter fiscal 2026 top and bottom lines outpaced the Zacks Consensus Estimate. Adjusted earnings were $3.43 per share, down 3.7% from the year-ago quarter but beat the consensus mark of $3.40. Net sales rose 4.8% year over year to $41.77 billion and topped the consensus estimate of $41.49 billion.
Home Depot reaffirmed its fiscal 2026 framework, calling for total sales growth of approximately 2.5-4.5% and comparable sales growth of roughly flat to 2%. The company also expects to open about 15 stores this year. HD anticipates EPS growth of approximately flat to 4% from $14.23 in fiscal 2025.
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RH (RH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.