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Tag: Home Improvement Stocks

  • The Two Best Home Improvement Stocks to Buy Now

    The Two Best Home Improvement Stocks to Buy Now

    The home improvement stocks to look forward to in 2021.

    The home improvement stocks once again must be on investor’s radar. The global pandemic has prolonged and does not seem to ease off. In the meantime, people spend most of their time at home—having much time to observe and identify the room for improvement.

    We have various companies that are working quite well in this sector and have much potential in the future. The increase spent on revamping the inside infrastructure has spiked during the COVID-19 era. This inclination in demand has played out as an upside for several companies in the home improvements space. So, there are certain key stocks to keep on your watch list. Here are the two best home improvement stocks to buy now.

    Lowe’s Companies (LOW)

    Lowe’s Companies (LOW) a US-based company that specializes in home improvement. The company is among Zacks’ top-ranked firms that are up to the standard. The three factors that could make Lowe’s a good investment option are:

    The first one is earnings growth. For any company, the earnings growth is a top indicator to judge the stock’s position and future potential. The historical EPS growth rate for Lowe’s is 17.6%, though the investors must know what’s up next. For this year, Lowe’s EPS is forecasted to have a growth rate of 52.4%, bamboozling the industry average quite extraordinarily, which is anticipated to be 14.8%.

    The second important factor is its impressive asset utilization ratio. It’s quite important and growth investors often overlook this aspect. The company has aS/TA ratio of 1.82, which means that Lowe’s earns $1.82 in sales for each dollar in assets. Whereas, the average industry rate stands at $1.67. So, Lowe’s tops the industry in this regard, as well.

    Moreover, the last important factor is the continuous revision of earnings estimates, which have been moving upwards. Zacks earnings estimate for 2021 has soared 0.1% over the first four weeks of 2021.

    Lumber Liquidators (LL)

    Lumber Liquidators (LL) is a holding company that has multi-channels with retailers in hardwood flooring, and hardwood flooring enhancements and accessories. The company has been performing well and the quarterly results have improved quite well during the pandemic.

    The company saw a rise in sales trends with sequential improvement in its Pro and Install customers. For the first half of 2020, the company saw a notable rise in demands, which continued into the next quarters. In Q3, the company reported revenues of $295.83 million, beating Zacks estimates by 3.55% and $263.96 million year-over-year. The quarterly earnings per share came in at $0.67, more than double of Zacks’ estimates of $0.30 per share. While it was a skyrocketing jump from the prior-year earnings of $0.08. At the moment, the outlook is quite positive and LL lies in the range of the buy zone.

  • The 3 Best Home Improvement Stocks to buy in 2021

    The 3 Best Home Improvement Stocks to buy in 2021

    The best home improvement stocks in the market to watch for in 2021.

    While staying at home all the time, people have had a new hobby; how to renovate or upgrade their homes. With nothing much to do, there has been a surge of interest among consumers in home improvement projects.

    Home improvement seems to have become a priority for consumers. That’s the reason why the home improvement firms were one of the biggest gainers during the pandemic. But what would happen once the pandemic ends?

    Let’s have a look at the three best home improvement stocks that have a strong long-term prospect.

    Home Depot (HD)

    Home Depot (HD) is one of the biggest home improvement enterprise in the market, with over 2,200 Home Depot stores across the U.S., Canada, and Mexico. HD stock made thriving progress in the past year—thanks to the increase in sales.

    During the pandemic period last year, the company added more than $15 billion to its sales base and made sky-touching profits during the first nine months of 2020. The outlook for Home Depot is bright as we head forward. While vaccine development is still underway there is a way to go before things could turn to normal. So, there is still substantial for home improvement to maintain sequential growth.

    Moreover, Home Depot’s fundamental track record is quite astonishing. The company’s EPS has soared up to 4% from $2.03 in 2011 to $10.25 in 2020. The double-digit growth shows that Home Depot’s demand has surged massively and should lift the business well enough in 2021.

    Wall Street anticipates Home Depot’s (HD) earnings to jump 15% in FY21 up to $11.83 per share. So, Home Depot is the big fish in the home improvement segment—for investment this year.

    Wayfair (W)

    Wayfair (W) is one of the world’s leading online destination for the home. The significance of Wayfair has grown with the pandemic and the evolution of the digital world. The company is well-established and its business model makes it a long-term stock.

    In the third quarter of 2020, the company reported net revenue of $3.8 billion, popping up to 66.5% year-over-year. While the US net revenue soared $1.3 billion, also up by 66.5% YoY. The global net revenues jumped $225.9 million, with a 66.7% growth. And, the gross profit was around $1.1 billion.

    The company is set to release the Q4 and full-year 2020 results on Feb. 25, 2021. The quarterly results are expected to report high revenue to due more demand for renovations in the holiday season.

    The CEO of Niraj Shah stated that their long-term goal and strategic investments in merchandising, selection, service, and delivery across North America and Europe would continue sustained profitability. This would help in positive free cash flow generation in the coming quarters. So, with long-term plans, Mayfair (W) is set to grow its market value—ultimately pushing the stock price.

    Builders FirstSource (BLDR)

    Builders FirstSource (BLDR) is a Dallas-based Fortune 500 company that manufactures and supplies building materials. The company has been doing great in the recent past—driven by the pandemic boost.

    BLDR stock has made notable growth since the lockdown period, soaring from $10.91 on March 30, 2020, to $43.48 on Jan. 18, 2021. BLDR shares closed the session on Feb. 1 at $39.42.

    Based on the firm’s continuous earnings consensus beat, Zacks expect the company to cross earnings estimate in yet another quarter. Builders FirstSource has scheduled to release the Q4 and full-year 2020 results on Feb. 26. The construction supply company has seen a continuous beat in earnings estimate—popping up by an average surprise of 89.15% in the past two quarters.

    In Q3 2020, the company reported net sales of $2.3 billion, up by almost 15.9% YoY. While the basic organic sales soared over 6.7%. The accusations—which the company made in the past year—accounted for a total contribution of 2% in net sales. The gross margin increased up to $29.5 million, totaling $570.7 million during the quarter.

    As per Zacks, the company has an Earnings ESP of +1.93%, as of now. This shows that the analysts have a bullish sentiment on the construction supply firm. Builders FirstSource (BLDR) is making good progress and is set to make good moves this year.