Sectors & IndustriesConsumer CyclicalHome Improvement Retail

Best Home Improvement Stocks to Buy Now (2024)

Top home improvement stocks in 2024 ranked by overall Due Diligence Score. See the best home improvement stocks to buy now, according to analyst forecasts for the home improvement retail industry.

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

Arhaus (NASDAQ:ARHS) is the top home improvement stock with a Due Diligence Score of 50, which is 21 points higher than the home improvement industry average of 29. It passed 16 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock return 13% over the past year, underperforming other home improvement stocks by -9 percentage points.

Arhaus has an average 1 year price target of $12.56, an upside of 19.35% from Arhaus's current stock price of $10.52.

Arhaus stock has a consensus Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Arhaus, 44.44% have issued a Strong Buy rating, 22.22% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Home Depot (NYSE:HD) is the second best home improvement stock with a Due Diligence Score of 46, which is 17 points higher than the home improvement industry average of 29. It passed 16 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock return 32.28% over the past year, overperforming other home improvement stocks by 11 percentage points.

Home Depot has an average 1 year price target of $437.86, an upside of 1.5% from Home Depot's current stock price of $431.37.

Home Depot stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Home Depot, 66.67% have issued a Strong Buy rating, 14.29% have issued a Buy, 19.05% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Lowes Companies (NYSE:LOW) is the third best home improvement stock with a Due Diligence Score of 43, which is 14 points higher than the home improvement industry average of 29. It passed 15 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock return 31.02% over the past year, overperforming other home improvement stocks by 9 percentage points.

Lowes Companies has an average 1 year price target of $282.43, an upside of 3.29% from Lowes Companies's current stock price of $273.43.

Lowes Companies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Lowes Companies, 42.86% have issued a Strong Buy rating, 19.05% have issued a Buy, 38.1% 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 5.55%, which is 3 percentage points higher than the home improvement industry average of 2.92%. 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 135.8% indicates that its high dividend yield might not be sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 1.65%, which is -1 percentage points lower than the home improvement industry average of 2.92%. 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 37.4% indicates that its dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 1.56%, which is -1 percentage points lower than the home improvement industry average of 2.92%. 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 59.9% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were up 1.17% in the last day, and down -0.04% over the last week.

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

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

Arhaus (NASDAQ:ARHS) is the most undervalued home improvement stock based on WallStreetZen's Valuation Score. Arhaus has a valuation score of 71, which is 44 points higher than the home improvement industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Arhaus's stock has gained 13% in the past year. It has underperformed other stocks in the home improvement industry by -9 percentage points.

Haverty Furniture Companies (NYSE:HVT) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Haverty Furniture Companies has a valuation score of 43, which is 16 points higher than the home improvement industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has dropped -29.87% in the past year. It has underperformed other stocks in the home improvement industry by -52 percentage points.

Lowes Companies (NYSE:LOW) is the third most undervalued home improvement stock based on WallStreetZen's Valuation Score. Lowes Companies has a valuation score of 29, which is 2 points higher than the home improvement industry average of 27. It passed 2 out of 7 valuation due diligence checks.

Lowes Companies's stock has gained 31.02% in the past year. It has overperformed other stocks in the home improvement industry by 9 percentage points.