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Housing Demand Boosts Furniture and Furnishings Sales: 6 Picks
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It was a great 2020 for the U.S. housing sector although the pandemic wreaked havoc. The housing sector has been performing well ever since the economy reopened thanks to record-low mortgage rates that saw people rushing to buy new homes despite skyrocketing prices. This boom in the housing market 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 saw 2020 turning out to be one of the best years for the housing market in the United States. And now, 2021 seems to be turning out as yet another outstanding year for the housing sector, with home sales growing in the first month.
New home sales jumped 4.3% month over month to a seasonally adjusted annual rate of 923,000 units in January to 923,000 units. Also, December sales pace was revised up to 5.5% from 1.6%.
Moreover, according to the National Association of Realtors, total sales volume for existing homes in 2020 ended at 5.64 million units, increasing from 5.34 million units in 2019. This is the highest level in 14 years.
The pandemic saw many leave big cities and shift to smaller towns and suburbs, spurring demand for new homes. Also, record-low mortgage rates have been luring people to invest in new homes.
Home Sales Help Furniture and Furnishing Industries
The homebuilding industry so far hasn’t been affected much by the pandemic except for in the months of April and May 2020, when the economy had shut down. New homes have been helping sales of furniture and furnishings, which too are thriving.
According to the Mastercard Spending Pulse, furniture and furnishing sales increased 8.6% in February. The main reason behind this jump was that people spent more freely after coronavirus stimulus checks started reaching them in January.
Moreover, the work and learn-from-home culture due to the pandemic has been aiding the furniture and furnishings industries as consumers are investing more in home improvement projects. This is likely to continue in the future too with no signs of the pandemic dying out.
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 60 days.
Sleep Number Corporation (SNBR - Free Report) transformed the mattress industry with the idea that 'one size does not fit all' when it comes to sleep. The company is now a leader in sleep innovation and was ranked Highest in Customer Satisfaction with Mattresses by J.D. Power.
The company’s expected earnings growth rate for the current year is 24.5%. The Zacks Consensus Estimate for current-year earnings has improved 32.6% over the past 30 days. Sleep Number Corporation has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ethan Allen Interiors Inc. 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 17% over the past 60 days. Ethan Allen sports a Zacks Rank #1.
Fortune Brands Home & Security, Inc. specializes in designing, manufacturing and selling home and security products, primarily used in the kitchen and bath cabinetry, plumbing and accessories, entry door systems, and security products applications.
The company’s expected earnings growth rate for the current year is 18.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. Fortune Brands Home & Security has a Zacks Rank #2 (Buy).
Haverty Furniture Companies, Inc. (HVT - Free Report) is a full-service home furnishings retailer in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle to upper-middle price ranges.
The company’s expected earnings growth rate for the current year is 12.8%. The Zacks Consensus Estimate for current-year earnings has improved 24.7% over the past 30 days. Haverty Furniture Companies has a Zacks Rank #1.
Tempur Sealy International, Inc. (TPX - Free Report) is involved in the development, manufacturing and marketing of bedding products primarily in North America and internationally. It provides mattresses, adjustable bases, pillows and other sleep and relaxation products.
The company’s expected earnings growth rate for the current year is 27.8%. The Zacks Consensus Estimate for current-year earnings has improved 22.6% over the past 60 days. Tempur Sealy carries a Zacks Rank #1.
The Lovesac Company (LOVE - Free Report) retails home furnishing products. The company offers alternative furniture stores, sectionals, bean bags, bean bag chairs as well as other accessories such as blankets, footsacs and throw pillows.
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 10% over the past 60 days. The Lovesac Company carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Housing Demand Boosts Furniture and Furnishings Sales: 6 Picks
It was a great 2020 for the U.S. housing sector although the pandemic wreaked havoc. The housing sector has been performing well ever since the economy reopened thanks to record-low mortgage rates that saw people rushing to buy new homes despite skyrocketing prices. This boom in the housing market 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 saw 2020 turning out to be one of the best years for the housing market in the United States. And now, 2021 seems to be turning out as yet another outstanding year for the housing sector, with home sales growing in the first month.
New home sales jumped 4.3% month over month to a seasonally adjusted annual rate of 923,000 units in January to 923,000 units. Also, December sales pace was revised up to 5.5% from 1.6%.
Moreover, according to the National Association of Realtors, total sales volume for existing homes in 2020 ended at 5.64 million units, increasing from 5.34 million units in 2019. This is the highest level in 14 years.
The pandemic saw many leave big cities and shift to smaller towns and suburbs, spurring demand for new homes. Also, record-low mortgage rates have been luring people to invest in new homes.
Home Sales Help Furniture and Furnishing Industries
The homebuilding industry so far hasn’t been affected much by the pandemic except for in the months of April and May 2020, when the economy had shut down. New homes have been helping sales of furniture and furnishings, which too are thriving.
According to the Mastercard Spending Pulse, furniture and furnishing sales increased 8.6% in February. The main reason behind this jump was that people spent more freely after coronavirus stimulus checks started reaching them in January.
Moreover, the work and learn-from-home culture due to the pandemic has been aiding the furniture and furnishings industries as consumers are investing more in home improvement projects. This is likely to continue in the future too with no signs of the pandemic dying out.
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 60 days.
Sleep Number Corporation (SNBR - Free Report) transformed the mattress industry with the idea that 'one size does not fit all' when it comes to sleep. The company is now a leader in sleep innovation and was ranked Highest in Customer Satisfaction with Mattresses by J.D. Power.
The company’s expected earnings growth rate for the current year is 24.5%. The Zacks Consensus Estimate for current-year earnings has improved 32.6% over the past 30 days. Sleep Number Corporation has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ethan Allen Interiors Inc. 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 17% over the past 60 days. Ethan Allen sports a Zacks Rank #1.
Fortune Brands Home & Security, Inc. specializes in designing, manufacturing and selling home and security products, primarily used in the kitchen and bath cabinetry, plumbing and accessories, entry door systems, and security products applications.
The company’s expected earnings growth rate for the current year is 18.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. Fortune Brands Home & Security has a Zacks Rank #2 (Buy).
Haverty Furniture Companies, Inc. (HVT - Free Report) is a full-service home furnishings retailer in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle to upper-middle price ranges.
The company’s expected earnings growth rate for the current year is 12.8%. The Zacks Consensus Estimate for current-year earnings has improved 24.7% over the past 30 days. Haverty Furniture Companies has a Zacks Rank #1.
Tempur Sealy International, Inc. (TPX - Free Report) is involved in the development, manufacturing and marketing of bedding products primarily in North America and internationally. It provides mattresses, adjustable bases, pillows and other sleep and relaxation products.
The company’s expected earnings growth rate for the current year is 27.8%. The Zacks Consensus Estimate for current-year earnings has improved 22.6% over the past 60 days. Tempur Sealy carries a Zacks Rank #1.
The Lovesac Company (LOVE - Free Report) retails home furnishing products. The company offers alternative furniture stores, sectionals, bean bags, bean bag chairs as well as other accessories such as blankets, footsacs and throw pillows.
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 10% over the past 60 days. The Lovesac Company carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>