Where Will RH Stock Be in 5 Years?

With shares up 95% over the last five years, RH's (NYSE: RH) stock has slightly outperformed the S 500 index, which has risen 88% over the same period.

And while the company faces near-term challenges like high interest rates and a slow housing market, its long-term thesis remains intact. Let's dig deeper to see if the company can maintain market-beating performance over the next half-decade.

Founded as Restoration Hardware, the company now known as RH started as an affordable hardware and fixture business in major U.S. cities. But its big pivot came with the arrival of CEO Gary Friedman in 2001. Friedman understood that wealthier people have bigger homes and spend "exponentially" more to furnish them. He shifted RH's strategy from knickknacks to high-value items to serve this clientele.

Source Fool.com