Sectors & IndustriesConsumer CyclicalHome Improvement Retail

Best Home Improvement Stocks to Buy Now (2023)

Top home improvement stocks in 2023 ranked by overall Zen Score. See the best home improvement stocks to buy now, according to analyst forecasts for the home improvement retail industry.

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

Haverty Furniture Companies (NYSE:HVT) is the top home improvement stock with a Zen Score of 58, which is 22 points higher than the home improvement industry average of 36. It passed 21 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 4.02% over the past year.

Haverty Furniture Companies has an average 1 year price target of $41.00, an upside of 25.69% from Haverty Furniture Companies's current stock price of $32.62.

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

Arhaus (NASDAQ:ARHS) is the second best home improvement stock with a Zen Score of 52, which is 16 points higher than the home improvement industry average of 36. It passed 17 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock lose -4.29% over the past year, underperforming other home improvement stocks by -9 percentage points.

Arhaus has an average 1 year price target of $14.43, an upside of 53.99% from Arhaus's current stock price of $9.37.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Arhaus, 42.86% have issued a Strong Buy rating, 42.86% have issued a Buy, 14.29% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Home Depot (NYSE:HD) is the third best home improvement stock with a Zen Score of 47, which is 11 points higher than the home improvement industry average of 36. It passed 17 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock return 0.73% over the past year, underperforming other home improvement stocks by -4 percentage points.

Home Depot has an average 1 year price target of $342.80, an upside of 5% from Home Depot's current stock price of $326.47.

Home Depot stock has a consensus Buy recommendation according to Wall Street analysts. Of the 20 analysts covering Home Depot, 45% have issued a Strong Buy rating, 10% have issued a Buy, 45% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

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

Haverty Furniture Companies (NYSE:HVT) has an annual dividend yield of 6.68%, which is 3 percentage points higher than the home improvement industry average of 3.77%. 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 53.7% indicates that its high dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 2.56%, which is -1 percentage points lower than the home improvement industry average of 3.77%. 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 52.2% indicates that its dividend yield is sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 2.07%, which is -2 percentage points lower than the home improvement industry average of 3.77%. Lowes Companies's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lowes Companies's dividend has shown consistent growth over the last 10 years.

Lowes Companies's dividend payout ratio of 33% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were down -0.12% in the last day, and up 1.63% over the last week.

We couldn't find a catalyst for why home improvement stocks are down.

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

Haverty Furniture Companies (NYSE:HVT) is the most undervalued home improvement stock based on WallStreetZen's Valuation Score. Haverty Furniture Companies has a valuation score of 71, which is 35 points higher than the home improvement industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 4.02% in the past year. It has performed in line with other stocks in the home improvement industry.

Arhaus (NASDAQ:ARHS) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Arhaus has a valuation score of 57, which is 21 points higher than the home improvement industry average of 36. It passed 4 out of 7 valuation due diligence checks.

Arhaus's stock has dropped -4.29% in the past year. It has underperformed other stocks in the home improvement industry by -9 percentage points.

Live Ventures (NASDAQ:LIVE) is the third most undervalued home improvement stock based on WallStreetZen's Valuation Score. Live Ventures has a valuation score of 57, which is 21 points higher than the home improvement industry average of 36. It passed 4 out of 7 valuation due diligence checks.

Live Ventures's stock has dropped -2.96% in the past year. It has underperformed other stocks in the home improvement industry by -7 percentage points.