Home improvement products retailers have been gaining from consumers’ continued inclination toward renovation and maintenance activities. Consumers have been investing toward making homes an enjoyable and comfortable space. Moreover, do-it-yourself (DIY) projects for remodeling, decorating as well as maintenance of furniture and fixtures have been quite popular.
Revamping interiors to adapt with work-from-home and remote schooling needs were widely undertaken amid the coronavirus pandemic. The increased time spent indoors inspired individuals to invest in their homes. Additionally, there has been a higher demand for gardening related tools as well as products related to stay-at-home activities such as paint and tool kits. But now that vaccinations are available, society is gradually returning to the old normal. As a result, individuals have begun spending time outdoors for work, socializing and entertainment needs. Nevertheless, with work-from-home practices still continuing as a prominent feature, many are likely to carry on with their interests of keeping homes well maintained. Moreover, favorable housing market conditions, characterized by high home-buying activities have been an advantage for companies catering to home improvements needs. Markedly, low mortgage rates and high demand for residential property have been aiding the housing market. Rapid urbanization trends also continue to remain an upside for the players in this space. Development of real estate projects and expansion of cities and towns have kept the demand favorable for home decor items as well as equipments and tools. Apart from these, home improvement products companies have been gaining from surging online business, stemming from consumers’ inclination toward digital transactions. Owing to this, players in the home improvements arena have been investing toward boosting their omni-channel capabilities, including online ordering and delivery services. The boom in digital transactions should continue to drive the top line of key industry players. With the scenario looking bright for the home improvements industry, investors may consider investing in stocks from this space. We have highlighted four such companies, which are gaining from their strong business-expansion endeavors and favorable market trends 4 Stocks in Focus
First on our list is
Lumber Liquidators Holdings, Inc. ( LL Quick Quote LL - Free Report) . This Richmond, VA-based company is a leading specialty retailer of hard-surface flooring materials and accessories. The company, which currently carries a Zacks Rank #2 (Buy), has been gaining from efficient transformational plans and measures to boost financial flexibility. Higher demand for home improvement projects as well as growth in installation business has been supporting the company’s revenues. Additionally, the company is undertaking prudent measures to boost consumers’ shopping experience in stores and online. Impressively, the stock has increased 62.9% in a year. Notably, the Zacks Consensus Estimate for 2021 earnings has remained stable in the past 30 days. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here One-Year Price Performance Image Source: Zacks Investment Research Lowe’s Companies Inc. ( LOW Quick Quote LOW - Free Report) is another potential pick. The Mooresville, NC-based leading home improvements retailer is gaining from its sturdy U.S. home-improvement business along with advancements in the digital channel. The company is investing toward enhancing omni-channel retailing capabilities. It completed the installation of Buy Online Pickup in Store touchless lockers across stores. Lowe’s is also gaining traction with the Total Home strategy that includes providing complete solutions for various types of home repair and improvement needs. It is also undertaking measures to boost sales to DIY and pro customers. Impressively, shares of this Zacks Rank #2 company have rallied 45.1% in a year. The Zacks Consensus Estimate for fiscal 2021 earnings has moved up 0.5% in the past 30 days. Well known home improvements retailer, The Home Depot, Inc. ( HD Quick Quote HD - Free Report) has been gaining from increased renovation and construction projects. The company is ramping up assortments and delivery systems to effectively meet market needs. This Atlanta, GA-based company follows a flexible interconnected infrastructure, which helps quickly adapt to changing customer preferences. This Zacks Rank #2 company is gaining from broad-based strength across stores and geographies as well as growing presence in the digital arena. The company is working toward boosting omni-channel functions such as curbside pickup and buy online pickup in store services with convenient pickup lockers. The stock has gained about 27% in a year. The Zacks Consensus Estimate for fiscal 2021 earnings has remained stable in the past 30 days. Investors may also consider investing in Tecnoglass, Inc. ( TGLS Quick Quote TGLS - Free Report) . This Columbia-based company is engaged in manufacturing, supplying and installation of architectural glass and windows as well as aluminum products for commercial and residential construction industries. The company caters to customers across North, Central and South America. Markedly, this Zacks Rank #2 company is gaining from strong growth in residential activity, recovering commercial construction activity as well as market share gains. Moreover, the company’s vertically integrated business model is helping manage costs. The stock has surged about 258.7% in a year. The Zacks Consensus Estimate for 2021 earnings has been stable in the past 30 days. More Stock News: This Is Bigger than the iPhone!
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