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Best Home Improvement Stocks to Buy Now (2022)
Top home improvement stocks in 2022 ranked by overall Zen Score. See the best home improvement stocks to buy now, according to analyst forecasts for the home improvement retail industry.

Industry: Home Improvement Retail
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
HVT
HAVERTY FURNITURE COMPANIES INC
NYSE
Home Improvement Retail
$479.92M$29.38-3.29%$135.43M5.66x1.60
LOW
LOWES COMPANIES INC
NYSE
Home Improvement Retail
$124.76B$195.20-3.29%$14.62B15.78x-8.23
LESL
LESLIE's INC
NASDAQ
Home Improvement Retail
$2.82B$15.39-4.94%$252.16M19.73x-5.32
FND
FLOOR & DECOR HOLDINGS INC
NYSE
Home Improvement Retail
$9.17B$86.47-6.27%$481.53M32.75x1.81
HD
HOME DEPOT INC
NYSE
Home Improvement Retail
$313.68B$305.21-2.17%$26.07B19.28x-45.80
GRWG
GROWGENERATION CORP
NASDAQ
Home Improvement Retail
$303.72M$5.00-9.09%$15.81M250.00x0.21
TTSH
TILE SHOP HOLDINGS INC
NASDAQ
Home Improvement Retail
$199.10M$3.810.26%$72.03M13.61x1.60
LL
LL FLOORING HOLDINGS INC
NYSE
Home Improvement Retail
$276.06M$9.41-2.69%$50.93M10.57x1.35
ARHS
ARHAUS INC
NASDAQ
Home Improvement Retail
$823.57M$5.88-6.37%N/AN/A8.41

Home Improvement Stocks FAQ

What are the best home improvement stocks to buy right now in Aug 2022?

According to Zen Score, the 3 best home improvement stocks to buy right now are:

1. Lowes Companies (NYSE:LOW)


Lowes Companies (NYSE:LOW) is the top home improvement stock with a Zen Score of 50, which is 9 points higher than the home improvement industry average of 41. It passed 18 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock return 3.84% over the past year, overperforming other home improvement stocks by 19 percentage points.

Lowes Companies has an average 1 year price target of $242.19, an upside of 24.07% from Lowes Companies's current stock price of $195.20.

Lowes Companies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 17 analysts covering Lowes Companies, 52.94% have issued a Strong Buy rating, 23.53% have issued a Buy, 23.53% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Leslie's (NASDAQ:LESL)


Leslie's (NASDAQ:LESL) is the second best home improvement stock with a Zen Score of 50, which is 9 points higher than the home improvement industry average of 41. It passed 17 out of 33 due diligence checks and has strong fundamentals. Leslie's has seen its stock lose -38.56% over the past year, underperforming other home improvement stocks by -23 percentage points.

Leslie's has an average 1 year price target of $21.50, an upside of 39.7% from Leslie's's current stock price of $15.39.

Leslie's stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Leslie's, 62.5% have issued a Strong Buy rating, 0% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Haverty Furniture Companies (NYSE:HVT)


Haverty Furniture Companies (NYSE:HVT) is the third best home improvement stock with a Zen Score of 50, which is 9 points higher than the home improvement industry average of 41. It passed 18 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock lose -21.67% over the past year, underperforming other home improvement stocks by -6 percentage points.

Haverty Furniture Companies stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Haverty Furniture Companies, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the home improvement stocks with highest dividends?

Out of 4 home improvement stocks that have issued dividends in the past year, the 3 home improvement stocks with the highest dividend yields are:

1. Tile Shop Holdings (NASDAQ:TTSH)


Tile Shop Holdings (NASDAQ:TTSH) has an annual dividend yield of 17.06%, which is 9 percentage points higher than the home improvement industry average of 7.87%. Tile Shop Holdings's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Tile Shop Holdings's dividend has shown consistent growth over the last 10 years.

Tile Shop Holdings's dividend payout ratio of 232.1% indicates that its high dividend yield might not be sustainable for the long-term.

2. Haverty Furniture Companies (NYSE:HVT)


Haverty Furniture Companies (NYSE:HVT) has an annual dividend yield of 10.31%, which is 2 percentage points higher than the home improvement industry average of 7.87%. Haverty Furniture Companies's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Haverty Furniture Companies's dividend has shown consistent growth over the last 10 years.

Haverty Furniture Companies's dividend payout ratio of 58.4% indicates that its high dividend yield is sustainable for the long-term.

3. Home Depot (NYSE:HD)


Home Depot (NYSE:HD) has an annual dividend yield of 2.33%, which is -6 percentage points lower than the home improvement industry average of 7.87%. Home Depot's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Home Depot's dividend has shown consistent growth over the last 10 years.

Home Depot's dividend payout ratio of 43.3% indicates that its dividend yield is sustainable for the long-term.

Why are home improvement stocks down?

Home improvement stocks were down -3.26% in the last day, and up 3.04% over the last week. Growgeneration was the among the top losers in the home improvement retail industry, dropping -9.09% yesterday.

Shares of several companies in the broader consumer discretionary sector are trading higher amid overall market strength as better-than-expected US CPI data lifted market sentiment and alleviated inflation concerns, which could benefit consumer discretionary spending.

What are the most undervalued home improvement stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued home improvement stocks right now are:

1. Tile Shop Holdings (NASDAQ:TTSH)


Tile Shop Holdings (NASDAQ:TTSH) is the most undervalued home improvement stock based on WallStreetZen's Valuation Score. Tile Shop Holdings has a valuation score of 57, which is 19 points higher than the home improvement industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Tile Shop Holdings's stock has dropped -49.74% in the past year. It has underperformed other stocks in the home improvement industry by -34 percentage points.

2. Lowes Companies (NYSE:LOW)


Lowes Companies (NYSE:LOW) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Lowes Companies has a valuation score of 43, which is 5 points higher than the home improvement industry average of 38. It passed 3 out of 7 valuation due diligence checks.

Lowes Companies's stock has gained 3.84% in the past year. It has overperformed other stocks in the home improvement industry by 19 percentage points.

3. Ll Flooring Holdings (NYSE:LL)


Ll Flooring Holdings (NYSE:LL) is the third most undervalued home improvement stock based on WallStreetZen's Valuation Score. Ll Flooring Holdings has a valuation score of 43, which is 5 points higher than the home improvement industry average of 38. It passed 3 out of 7 valuation due diligence checks.

Ll Flooring Holdings's stock has dropped -50.91% in the past year. It has underperformed other stocks in the home improvement industry by -35 percentage points.

Are home improvement stocks a good buy now?

44.44% of home improvement stocks rated by analysts are a strong buy right now. On average, analysts expect home improvement stocks to rise by 22.62% over the next year.

What is the average p/e ratio of the home improvement retail industry?

The average P/E ratio of the home improvement retail industry is 18.69x.
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