TheStreet's Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed home furnishings retailer RH (RH) - Get RH (Restoration Hardware) Report, which Cramer said in his Real Money column "may be one of the best second-half stocks to buy."
Last month, RH reported first-quarter revenue of $860.8 million, up a whopping 78% from $482.9 million a year ago, and blasted analysts' calls for $751.5 million.
Customer demand has soared during the pandemic. The company also raised its guidance.
"They had the best earnings report of the second quarter," Cramer said. "People are looking for basically a fraction of what they reported."
CEO Gary Friedman, Cramer added, "bought a huge amount of stock."
"Gary Friedman went on 'Mad Money'," Cramer said, "looked at the camera - this was when the stock was at $125 - and said, 'I'm going to buy a million shares after this is over' and it went to $600. Good call."
Marks and Cramer both praised the company's fine showrooms and Cramer described RH's restaurant as "Insta-heaven."
If there were Michelin books for retailers, Cramer said in his column, "RH would get three stars and everyone else would get no stars."
Bed Bath & Beyond
"They keep referencing Buy Buy Baby," Cramer said, referring to the store the company bought from Toys R Us in 2007. "Why? Over and over again there’s something going on with that business that we don’t know about that makes me say, 'stay long on Bed Bath & Beyond.'"
Cramer praised Macellum Capital Management CEO Jon Duskin's efforts in turning the company around.
"What Jon didn't do was fire everyone; he brought in a merchant," Cramer said, referring to CEO Mark Tritton, "who changed the top. The people working there are the stores, they didn't know. They've just directed badly."