Should I Buy RH (RH)? Finance YouTuber Analysis

The YouTuber is considering RH, a high-end furniture company, which has performed poorly due to a dead housing market. He believes the housing market will recover over the next four years, leading to higher stock prices for RH, despite short-term uncertainty about its immediate direction.

“But I believe I do know where the next $160 is or the next $130 is for RH. And it's it's higher, right? So, that's one I'm definitely considering as well.”

The analyst suggests RH (formerly Restoration Hardware) as a buy, highlighting its substantial share buybacks, reducing shares outstanding from 41 million to 18.4 million since 2017. The company generates over $250 million in free cash flow annually, which it uses to repurchase stock, creating value for shareholders despite potential downturns in the high-end furniture market.

“Going back to 2017 the company had 41 million shares outstanding that's down to just 18.4 million recently management has been buying back shares like crazy you can see that free cash flow is over 250 million dollars per year.”