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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.

Industry: Home Improvement Retail
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
ARHS
ARHAUS INC
NASDAQ
Home Improvement Retail
$1.88B$13.420.52%$163.78M23.54x4.64
HVT
HAVERTY FURNITURE COMPANIES INC
NYSE
Home Improvement Retail
$538.68M$33.360.63%$136.05M6.24x1.44
HD
HOME DEPOT INC
NYSE
Home Improvement Retail
$322.77B$316.690.92%$27.06B19.01x58.22
FND
FLOOR & DECOR HOLDINGS INC
NYSE
Home Improvement Retail
$9.21B$86.832.49%$509.52M32.77x1.68
LL
LL FLOORING HOLDINGS INC
NYSE
Home Improvement Retail
$180.50M$6.164.41%$34.13M13.39x1.41
LESL
LESLIE's INC
NASDAQ
Home Improvement Retail
$2.79B$15.215.33%$269.13M17.69x-6.61
LOW
LOWES COMPANIES INC
NYSE
Home Improvement Retail
$122.45B$202.490.34%$12.84B19.68x-4.65
GRWG
GROWGENERATION CORP
NASDAQ
Home Improvement Retail
$282.71M$4.645.45%-$141.34M-1.84x0.33
TTSH
TILE SHOP HOLDINGS INC
NASDAQ
Home Improvement Retail
$220.04M$4.96-0.20%$74.03M15.50x1.97

Home Improvement Stocks FAQ

What are the best home improvement stocks to buy right now in Jan 2023?

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

1. Arhaus (NASDAQ:ARHS)


Arhaus (NASDAQ:ARHS) is the top home improvement stock with a Zen Score of 59, which is 17 points higher than the home improvement industry average of 42. It passed 20 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock return 62.67% over the past year, overperforming other home improvement stocks by 73 percentage points.

Arhaus has an average 1 year price target of $11.83, a downside of -11.83% from Arhaus's current stock price of $13.42.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Arhaus, 50% have issued a Strong Buy rating, 33.33% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Haverty Furniture Companies (NYSE:HVT)


Haverty Furniture Companies (NYSE:HVT) is the second best home improvement stock with a Zen Score of 54, which is 12 points higher than the home improvement industry average of 42. It passed 19 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 17.76% over the past year, overperforming other home improvement stocks by 28 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.

3. Home Depot (NYSE:HD)


Home Depot (NYSE:HD) is the third best home improvement stock with a Zen Score of 46, which is 4 points higher than the home improvement industry average of 42. It passed 16 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock lose -11.15% over the past year, underperforming other home improvement stocks by -1 percentage points.

Home Depot has an average 1 year price target of $346.71, an upside of 9.48% from Home Depot's current stock price of $316.69.

Home Depot stock has a consensus Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Home Depot, 50% have issued a Strong Buy rating, 16.67% have issued a Buy, 33.33% 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 3 home improvement stocks that have issued dividends in the past year, the 3 home improvement stocks with the highest dividend yields are:

1. Haverty Furniture Companies (NYSE:HVT)


Haverty Furniture Companies (NYSE:HVT) has an annual dividend yield of 6.26%, which is 3 percentage points higher than the home improvement industry average of 3.54%. Haverty Furniture Companies's dividend payout is not stable, having dropped more than 10% six 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 57.2% indicates that its high dividend yield is sustainable for the long-term.

2. Home Depot (NYSE:HD)


Home Depot (NYSE:HD) has an annual dividend yield of 2.4%, which is -1 percentage points lower than the home improvement industry average of 3.54%. 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 44.1% indicates that its dividend yield is sustainable for the long-term.

3. Lowes Companies (NYSE:LOW)


Lowes Companies (NYSE:LOW) has an annual dividend yield of 1.95%, which is -2 percentage points lower than the home improvement industry average of 3.54%. 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 36% indicates that its dividend yield is sustainable for the long-term.

Why are home improvement stocks up?

Home improvement stocks were up 1.07% in the last day, and up 0.74% over the last week. Leslie's was the among the top gainers in the home improvement retail industry, gaining 5.33% yesterday.

Shares of several companies in the broader consumer discretionary space are trading higher amid overall market strength following PCE data.

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. Haverty Furniture Companies (NYSE:HVT)


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 30 points higher than the home improvement industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 17.76% in the past year. It has overperformed other stocks in the home improvement industry by 28 percentage points.

2. Ll Flooring Holdings (NYSE:LL)


Ll Flooring Holdings (NYSE:LL) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Ll Flooring Holdings has a valuation score of 71, which is 30 points higher than the home improvement industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Ll Flooring Holdings's stock has dropped -55% in the past year. It has underperformed other stocks in the home improvement industry by -44 percentage points.

3. Tile Shop Holdings (NASDAQ:TTSH)


Tile Shop Holdings (NASDAQ:TTSH) is the third most undervalued home improvement stock based on WallStreetZen's Valuation Score. Tile Shop Holdings has a valuation score of 57, which is 16 points higher than the home improvement industry average of 41. It passed 4 out of 7 valuation due diligence checks.

Tile Shop Holdings's stock has dropped -23.1% in the past year. It has underperformed other stocks in the home improvement industry by -13 percentage points.

Are home improvement stocks a good buy now?

44.44% of home improvement stocks rated by analysts are a buy right now. On average, analysts expect home improvement stocks to rise by 11.63% 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 19.44x.
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