5 Best Jim Cramer Stocks to Watch in December

2. RH (NYSE:RH)

Number of Hedge Fund Holders: 57

Cramer expressed optimism about RH’s (NYSE:RH) past performance, implying that every decline in RH stock has “been a reason to buy, not sell.” On December 6, Wedbush analyst Seth Basham maintained a Buy rating on the furniture stock with a price target of $600.

The California-based luxury furnishings retailer offers everything from textiles to lighting to children’s and teen furniture. RH (NYSE:RH) sells products through its galleries and e-commerce platforms.

RH (NYSE:RH) is one of the most popular Google searches in the previous four weeks, gaining traction among investors and potential customers. The furniture company saw an 18% increase in its search trend year over year.

With a stake worth $1.2 billion, Berkshire Hathaway is the biggest shareholder of the company as of the third quarter of 2021. Overall, 57 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in RH (NYSE:RH) at the end of September 2021, up from 54 in the preceding quarter.

Here is what Polen Capital has to say about RH (NYSE:RH) in its Q1 2021 investor letter:

“RH was also a top contributor during the quarter. RH is a leading luxury retailer in home furnishings, including high-end luxury furniture, home décor, lighting, textiles, etc. The company has experienced high demand for its products over the past year, despite many of its galleries and integrated restaurants being closed, at least temporarily, in 2020. We think the management team has continued to make thoughtful investments in the core business as well as other adjacencies to further meet customer needs. We believe RH has a long runway to further expand into other home furnishings categories, expand its footprint both domestically and internationally, and launch other luxury adjacent categories.”