What changed
$RH — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 FQ1 FY2027 (ends Apr) | reported Jun 11 | Rev $800M | EPS $-1.97 vs $-0.07 🔴 | Margin 4.3%
💡 Consensus expected a near-breakeven quarter, but the massive miss shows the downturn is deeper than priced in; even after the miss, the stock's valuation implies a rapid recovery, likely overly optimistic given macro realities.
📉 Reward/risk: 3.0:1
🏢 Business Quality: 5/10
📊 Valuation: rich (EV/Revenue 3.7x, EV/GP 8.9x, EV/FCF 222x; relative to peers and history, premium multiple on depressed earnings, little margin of safety)
🔮 Catalyst: FQ2 FY2027 earnings showing operating margin improvement and positive EPS
💰 Entry: $159.04, stop $100, target $180
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/RH0627