Why Shares in RH Surged Again in November
Shares in high-end home furnishings company RH (NYSE: RH) surged 35.2% in November, according to data provided by S&P Global Market Intelligence. The move completes yet another month of double-digit gains or losses in the month. However, investors in the company won't worry too much about the down months because the stock is up 115% on a year-to-date basis.
The reason behind the volatility comes down to the investing bull and bear debate over the stock. On the one hand, the bears are worried about the relatively high valuation -- the stock trades on 27 times forward earnings. In addition, there is a fear that the current strength in earnings comes down to non-repeatable demand created by stay-at-home measures.
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Source Fool.com
