RH - Why RH SecureWorks and Aurinia Pharmaceuticals Jumped Today
Thursday brought some uncertainty to Wall Street, as major benchmarks traded on both sides of the unchanged mark at various points during the session. Initial optimism about possible progress on the trade front with U.S.-Chinese negotiations gave way to a more somber assessment of the proceedings, and investors also aren't certain how the overall economy is likely to respond to trade and other issues. However, some companies saw their stocks move sharply higher. RH (NYSE: RH), SecureWorks (NASDAQ: SCWX), and Aurinia Pharmaceuticals (NASDAQ: AUPH) were among the top performers. Here's why they did so well.
Shares of RH climbed 13% after the luxury home furnishings retailer dazzled investors with its third-quarter financial results. RH reported a 6% rise in revenue from year-ago levels, and adjusted earnings soared almost 75% year over year. CEO Gary Friedman took a victory lap with the news, arguing that investors have gotten tired of companies that tout sales growth without profitability and celebrating RH's success in transforming its business model. With more customers recognizing the RH brand as a mark of luxury, the retailer hopes to attract more members and boost its margin levels, and the company's outlook suggests that the future could even brighter for shareholders.
Image source: RH.