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The Zacks Analyst Blog Highlights: Sleep Number, Leggett & Platt, Bassett Furniture, Ethan Allen and Williams-Sonoma
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For Immediate Release
Chicago, IL – May 14, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sleep Number Corporation (SNBR - Free Report) , Leggett & Platt, Incorporated (LEG - Free Report) , Bassett Furniture Industries, Incorporated (BSET - Free Report) , Ethan Allen Interiors Inc. and Williams-Sonoma, Inc. (WSM - Free Report) .
The housing sector has been doing well for the past year despite the pandemic wreaking havoc. Although prices are skyrocketing and mortgage rates are going up since the beginning of this year, people are still buying new homes. This boom in the housing market at the same time is also helping industries like furniture and furnishings.
Home Market Continues to Grow
People have been rushing to buy homes ever since the economy reopened. This made 2020 a great year for the housing market and this year too started on a high, with home sales growth logged in March.
New home sales jumped 20.7% month over month to a seasonally adjusted annual rate of 1,021,000 units in March. Moreover, according to the National Association of Realtors, total sales volume for existing homes ended at 5.64 million units in 2020, increasing from 5.34 million units in 2019. This is the highest level in 14 years.
The momentum has continued into this year and people are buying homes despite skyrocketing prices. Moreover, according to brokerage firm Redfin, home sales this year could hit a record high of $2.5 trillion given the low mortgage rates and soaring demand for larger properties away from cities to avoid living in crowded places.
Home Sales Driving Furniture, Furnishing Sales
The homebuilding industry so far hasn't been affected much despite the pandemic-led shut down in the months of April and May 2020. New homes have been helping sales of furniture and furnishings, which too are thriving. Since mortgage rates are expected to remain low, demand for furniture products is set to escalate in the coming months.
According to a report in Business Wire, the home decor market in the United States was valued at $190.96 billion in 2020 and is expected to reach $283 billion by the end of 2026.
Also, according to Mastercard SpendingPulse, retail sales jumped 23.3% year over year in April, which is a clear indication that people are spending more. According to the Home Furnishings Market 2021 Insights and Business Scenario, published in ksusentinel.com, the global home furnishings market is also projected to witness a CAGR of 6% by 2025.
The work and learn-from-home culture due to the COVID-19 pandemic too has been aiding the furniture and furnishings industries as consumers are investing in more home improvement projects. This is likely to continue in the future too with no signs of the pandemic ebbing.
Our Choices
In such a scenario, we suggest six stocks from the furniture and home furnishings industries that possess strong growth potential and have witnessed robust earnings estimate revisions in the last 30 days.
Sleep Number transformed the mattress industry with the idea that "one size does not fit all" when it comes to sleep. The company is the leader in sleep innovation.
The company's expected earnings growth rate for the current year is 38.2%. The Zacks Consensus Estimate for current-year earnings has improved 11% over the past 30 days. Sleep Number Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Leggett & Platt is a global manufacturer that conceives, designs and produces a wide variety of engineered components and products found in many homes, offices and automobiles.
The company's expected earnings growth rate for the current year is 27.2%. The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the past 30 days. Leggett & Platt carries a Zacks Rank #2.
Bassett Furniture Industries is a leading manufacturer and marketer of high-quality, mid-priced home furnishings.
The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.8% over the past 60 days. Bassett Furniture Industries sports a Zacks Rank #1.
Ethan Allen Interiors is a leading interior design company and manufacturer and retailer of quality home furnishings.
The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.8% over the past 30 days. Ethan Allen sports a Zacks Rank #1.
Williams-Sonoma is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands, with and each brand being an operating segment.
The company's expected earnings growth rate for the current year is 9.2%. The Zacks Consensus Estimate for current-year earnings has improved 26.4% over the past 60 days. WilliamsSonoma has a Zacks Rank #1.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Sleep Number, Leggett & Platt, Bassett Furniture, Ethan Allen and Williams-Sonoma
For Immediate Release
Chicago, IL – May 14, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sleep Number Corporation (SNBR - Free Report) , Leggett & Platt, Incorporated (LEG - Free Report) , Bassett Furniture Industries, Incorporated (BSET - Free Report) , Ethan Allen Interiors Inc. and Williams-Sonoma, Inc. (WSM - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Housing Demand Boosts Furniture, Furnishings Sales: 5 Picks
The housing sector has been doing well for the past year despite the pandemic wreaking havoc. Although prices are skyrocketing and mortgage rates are going up since the beginning of this year, people are still buying new homes. This boom in the housing market at the same time is also helping industries like furniture and furnishings.
Home Market Continues to Grow
People have been rushing to buy homes ever since the economy reopened. This made 2020 a great year for the housing market and this year too started on a high, with home sales growth logged in March.
New home sales jumped 20.7% month over month to a seasonally adjusted annual rate of 1,021,000 units in March. Moreover, according to the National Association of Realtors, total sales volume for existing homes ended at 5.64 million units in 2020, increasing from 5.34 million units in 2019. This is the highest level in 14 years.
The momentum has continued into this year and people are buying homes despite skyrocketing prices. Moreover, according to brokerage firm Redfin, home sales this year could hit a record high of $2.5 trillion given the low mortgage rates and soaring demand for larger properties away from cities to avoid living in crowded places.
Home Sales Driving Furniture, Furnishing Sales
The homebuilding industry so far hasn't been affected much despite the pandemic-led shut down in the months of April and May 2020. New homes have been helping sales of furniture and furnishings, which too are thriving. Since mortgage rates are expected to remain low, demand for furniture products is set to escalate in the coming months.
According to a report in Business Wire, the home decor market in the United States was valued at $190.96 billion in 2020 and is expected to reach $283 billion by the end of 2026.
Also, according to Mastercard SpendingPulse, retail sales jumped 23.3% year over year in April, which is a clear indication that people are spending more. According to the Home Furnishings Market 2021 Insights and Business Scenario, published in ksusentinel.com, the global home furnishings market is also projected to witness a CAGR of 6% by 2025.
The work and learn-from-home culture due to the COVID-19 pandemic too has been aiding the furniture and furnishings industries as consumers are investing in more home improvement projects. This is likely to continue in the future too with no signs of the pandemic ebbing.
Our Choices
In such a scenario, we suggest six stocks from the furniture and home furnishings industries that possess strong growth potential and have witnessed robust earnings estimate revisions in the last 30 days.
Sleep Number transformed the mattress industry with the idea that "one size does not fit all" when it comes to sleep. The company is the leader in sleep innovation.
The company's expected earnings growth rate for the current year is 38.2%. The Zacks Consensus Estimate for current-year earnings has improved 11% over the past 30 days. Sleep Number Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Leggett & Platt is a global manufacturer that conceives, designs and produces a wide variety of engineered components and products found in many homes, offices and automobiles.
The company's expected earnings growth rate for the current year is 27.2%. The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the past 30 days. Leggett & Platt carries a Zacks Rank #2.
Bassett Furniture Industries is a leading manufacturer and marketer of high-quality, mid-priced home furnishings.
The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.8% over the past 60 days. Bassett Furniture Industries sports a Zacks Rank #1.
Ethan Allen Interiors is a leading interior design company and manufacturer and retailer of quality home furnishings.
The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.8% over the past 30 days. Ethan Allen sports a Zacks Rank #1.
Williams-Sonoma is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands, with and each brand being an operating segment.
The company's expected earnings growth rate for the current year is 9.2%. The Zacks Consensus Estimate for current-year earnings has improved 26.4% over the past 60 days. WilliamsSonoma has a Zacks Rank #1.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.