Sectors & IndustriesConsumer CyclicalHome Improvement Retail

Best Home Improvement Stocks to Buy Now (2025)

Top home improvement stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best home improvement stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best home improvement stocks to buy right now are:

Haverty Furniture Companies (NYSE:HVT) is the #1 top home improvement stock out of 8 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Haverty Furniture Companies (NYSE:HVT) is: Value: B, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: C.

Haverty Furniture Companies (NYSE:HVT) has a Due Diligence Score of 39, which is 6 points higher than the home improvement industry average of 33.

HVT passed 13 out of 38 due diligence checks and has average fundamentals. Haverty Furniture Companies has seen its stock lose -25.45% over the past year, underperforming other home improvement stocks by -15 percentage points.

Lowes Companies (NYSE:LOW) is the #2 top home improvement stock out of 8 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Lowes Companies (NYSE:LOW) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: C.

Lowes Companies (NYSE:LOW) has a Due Diligence Score of 45, which is 12 points higher than the home improvement industry average of 33.

LOW passed 16 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock lose -4.71% over the past year, overperforming other home improvement stocks by 6 percentage points.

Lowes Companies has an average 1 year price target of $265.14, an upside of 22.71% from Lowes Companies's current stock price of $216.08.

Lowes Companies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 14 analysts covering Lowes Companies, 50% have issued a Strong Buy rating, 21.43% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Tile Shop Holdings (NASDAQ:TTSH) is the #3 top home improvement stock out of 8 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Tile Shop Holdings (NASDAQ:TTSH) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Tile Shop Holdings (NASDAQ:TTSH) has a Due Diligence Score of 20, which is -13 points lower than the home improvement industry average of 33.

TTSH passed 7 out of 38 due diligence checks and has weak fundamentals. Tile Shop Holdings has seen its stock lose -11.52% over the past year, underperforming other home improvement stocks by -1 percentage points.

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 6.37%, which is 3 percentage points higher than the home improvement industry average of 3.51%. 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 97.7% indicates that its high dividend yield might not be sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 2.57%, which is -1 percentage points lower than the home improvement industry average of 3.51%. 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 61.2% indicates that its dividend yield is sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 1.6%, which is -2 percentage points lower than the home improvement industry average of 3.51%. 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 38% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were down -0.1% in the last day, and down -3.17% over the last week.

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

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued home improvement stocks right now are:

Haverty Furniture Companies (NYSE:HVT) is the most undervalued home improvement stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Haverty Furniture Companies has a valuation score of 43, which is 13 points higher than the home improvement industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has dropped -25.45% in the past year. It has underperformed other stocks in the home improvement industry by -15 percentage points.

Lowes Companies (NYSE:LOW) is the second most undervalued home improvement stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Lowes Companies has a valuation score of 29, which is -1 points higher than the home improvement industry average of 30. It passed 2 out of 7 valuation due diligence checks.

Lowes Companies's stock has dropped -4.71% in the past year. It has overperformed other stocks in the home improvement industry by 6 percentage points.

Arhaus (NASDAQ:ARHS) is the third most undervalued home improvement stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Arhaus has a valuation score of 71, which is 41 points higher than the home improvement industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Arhaus's stock has dropped -52.28% in the past year. It has underperformed other stocks in the home improvement industry by -42 percentage points.

50% of home improvement stocks rated by analysts are a strong buy right now. On average, analysts expect home improvement stocks to rise by 21.38% over the next year.

0% of home improvement stocks have a Zen Rating of A (Strong Buy), 0% of home improvement stocks are rated B (Buy), 71.43% are rated C (Hold), 14.29% are rated D (Sell), and 14.29% are rated F (Strong Sell).