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Stock impact report

3 Consumer Stocks We Find Risky [Yahoo! Finance]

RH (RH) 
Last rh earnings: 3/30 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
This puts retail stocks in a tough spot, and over the past six months, the industry's 7.4% gain has trailed the S&P 500 by 2.6 percentage points. Investors should tread carefully as many companies in this space can be value traps. With that said, here are three consumer stocks we're swiping left on. Market Cap: $3.73 billion Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor. Why Does RH Fall Short? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations Earnings per share have contracted by 38.3% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens RH's stock price of $197.43 implies a valuation ratio of Show less Read more
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