5 Stocks That Will Make You Rich In 5-10 years

2. RH (NYSE:RH)

Number of Hedge Fund Holders: 59

RH (NYSE:RH) is a California-based home furnishings designer and retailer with a presence in the US and Canada through its 70 locations. The company has the distinction of having Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK-B) as one of its leading investors.

Phillip Blee at William Blair resumed coverage on RH (NYSE:RH) stock with an Outperform rating on September 21. The analyst highlighted that the company reported a better-than-anticipated top line and bottom line for Q2. Furthermore, RH (NYSE:RH) has been able to capitalize on the changes in consumption trends in the last two years. There is a wide belief that RH (NYSE:RH) is in a position to experience sales and earnings growth in the long run.

Analysts think RH (NYSE:RH) is amongst the best long-term stocks due to its stable free cash flows and premium positioning in the industry. The company has a strong backlog and is also looking into tapping into a market opportunity of $20 to $25 billion globally through expansion plans in the next five years.

Here’s what Polen Capital said about RH (NYSE:RH) in its Q1 2022 investor letter:

“RH is a furniture store company with brand recognition and a unique business model. The company’s stock price fell sharply over the first three months of 2022 despite solid operating results, which resulted in what we believed to be an attractive opportunity to add to our position in the company. We are mindful that, on the margin, the company is certainly experiencing some early impact from record inflation and rising interest rates, and we feel comfortable in both the management team’s ability to navigate these challenges and the power of the company’s brand and its long-term potential.”