Bed Bath & Beyond (BBBY) continues to fall toward obsolescence as debt piles up and sales slide. It has already warned of nearing bankruptcy filing, and it's trying to cut costs, close stores, find a buyer, and negotiate with creditors. 

The risk of losing an investment right now doesn't look anywhere near worth the potential of the stock miraculously bouncing back -- especially when there are so many great stocks you could buy without the sky-high risk and with tons of potential. Other housewares stocks have enormous market opportunities and could lead to wealth creation without the fingernail-biting.

Consider RH (RH 2.49%) and Williams-Sonoma (WSM 3.89%).

1. RH: Not just a furniture company

RH sells high-end luxury furniture, and it has expanded to offer an array of upscale experiences under its marquee brand. Visionary CEO Gary Friedman sees the future of the company as a top global brand and style leader, and despite the volatile economy, he's steering it toward even loftier levels of luxury.

The company made a sustained recovery from the pandemic in 2021 but then experienced a relapse as inflation shot up last year. Revenue is still elevated from pre-pandemic levels, but it began to decline in the second half of the year.

Earnings have also been pressured, but RH has remained profitable. It has resisted the massive product markdowns that many retailers have been making in favor of maintaining its premium branding.

Management sees it as an investment in the future, and not only is it bucking that trend, but it's buckling down on its strategy to amplify its label. It recently acquired several small luxury houseware names and launched new collections, as well as its online portal and social media presence.

After losing half of its value in 2022, RH stock is up 16% in 2023. Although Wall Street doesn't look too kindly at declining sales and earnings and lower guidance, which it announced in the 2022 third-quarter report, bullish investors in some corners are showing confidence in the company.

RH has the elite status of being owned by Berkshire Hathaway and has at least one feature that's typical of a Buffett stock -- it may be undervalued. The shares trade at a price-to-earnings ratio of less than 12, which looks like an attractive price point for a stock with robust opportunities. 

Investors should expect pressure this year, but in the long term RH should be a fabulous addition to your portfolio.

2. Williams-Sonoma: An umbrella of favorite brands

Williams-Sonoma actually looks like a more typical Buffett-style value stock, although Berkshire Hathaway has yet to buy shares. It has soundly outperformed the market over time as it consistently grows sales and earnings, engages customers, and captures market share.

It's a similar company to RH, with several brands mostly geared toward an affluent market. Its largest brand is Pottery Barn, which directly competes with RH. Unlike RH, it has yet to post any sales or earnings declines.

Williams-Sonoma demonstrates growth consistently, including straight through the pandemic and despite inflation in 2022. In 2022's third quarter, comparable brand sales increased 8.1% over the prior year, and management is guiding for a similar kind of increase for the full fiscal year. Earnings per share increased 13%, and operating income rose 2.8%, although operating and gross margins fell from last year.

Management sees an $830 billion addressable market, of which it has about 1%, and trends are in its favor. And since 66% of its sales come from digital channels, it's well-positioned to capture market share as customers move over. It's also expanding into global markets and business-to-business sales.

Williams-Sonoma pays a growing dividend that yields 2.3% at the current price. Despite all of its accomplishments, the shares trade at the dirt-cheap valuation of 8 times trailing-12-month earnings.

Williams-Sonoma is an inexpensive stock that beats the market and has plenty of growth opportunities. It can add tremendous value to a solid investment portfolio.