AI Stocks Dominate Monday’s Top 10 Performers

2. RH (NYSE:RH)

RH, formerly Restoration Hardware, ended two days of consecutive losses on Monday, surging 12.92 percent to end at $164.48 apiece as investor sentiment was buoyed by an investment firm’s positive outlook for the company.

On Monday, analysts from Stifel lowered the company’s price target to $390 from $450 previously, following the company’s drop in its latest earnings performance, but gave RH a “buy” rating.

Last Friday, RH announced a more optimistic outlook following President Donald Trump’s recent “productive” call with Vietnam’s To Lam, General Secretary of the Communist Party. RH sources a significant chunk of its supplies from Vietnam.

“Just had a very productive call with To Lam … who told me that Vietnam wants to cut their tariffs down to zero if they are able to make an agreement with the US. I thanked him on behalf of our country, and said I look forward to a meeting in the near future,” he said.

If the president responds in kind, RH said its resourcing to Vietnam would be accretive to its margins.

“The company has been operating with 25 percent tariffs from China since the last Trump administration and has successfully resourced the majority of its China production to Vietnam at significantly better than pre-tariff landed China pricing. In addition, the company has successfully resourced a meaningful amount of its China production to its own factory in North Carolina,” RH said.