Is Restoration Hardware (RH) Stock a Buy?

Luxury furniture company RH (NYSE: RH), formerly known as Restoration Hardware, is closed for business at its 83 retail locations. Many of the company's most important stores are located in major U.S. cities -- areas hit hardest by the COVID-19 pandemic. E-commerce and catalog orders are still an option for consumers, but RH is primarily a physical retail business.

Based on stock performance, it's clear investors are betting on the success of e-commerce furniture companies in lieu of traditional brick-and-mortar retailers like RH. Just consider the year-to-date returns of RH compared to Overstock and Wayfair.