Sectors & IndustriesConsumer CyclicalHome Improvement Retail

Best Home Improvement Stocks to Buy Now (2024)

Top home improvement stocks in 2024 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:

Arhaus (NASDAQ:ARHS) is the top home improvement stock with a Zen Score of 55, which is 22 points higher than the home improvement industry average of 33. It passed 18 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock return 70.27% over the past year, overperforming other home improvement stocks by 61 percentage points.

Arhaus has an average 1 year price target of $16.63, an upside of 18.5% from Arhaus's current stock price of $14.03.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Arhaus, 50% have issued a Strong Buy rating, 37.5% have issued a Buy, 12.5% 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 Zen Score of 52, which is 19 points higher than the home improvement industry average of 33. It passed 19 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock return 11.35% over the past year, overperforming other home improvement stocks by 2 percentage points.

Home Depot has an average 1 year price target of $388.58, an upside of 16.73% from Home Depot's current stock price of $332.89.

Home Depot stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Home Depot, 52.63% have issued a Strong Buy rating, 21.05% have issued a Buy, 21.05% have issued a hold, while 5.26% 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 Zen Score of 48, which is 15 points higher than the home improvement industry average of 33. It passed 17 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock return 9.94% over the past year, overperforming other home improvement stocks by 1 percentage points.

Lowes Companies has an average 1 year price target of $249.86, an upside of 9.21% from Lowes Companies's current stock price of $228.79.

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, 4.76% have issued a Buy, 52.38% 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 7.23%, which is 3 percentage points higher than the home improvement industry average of 3.9%. Haverty Furniture Companies's dividend payout is not stable, having dropped more than 10% eight 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 62.6% 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 3.9%. 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 56.2% indicates that its dividend yield is sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 1.9%, which is -2 percentage points lower than the home improvement industry average of 3.9%. 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 32.9% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were up 0.13% in the last day, and down -3.68% 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 35 points higher than the home improvement industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Arhaus's stock has gained 70.27% in the past year. It has overperformed other stocks in the home improvement industry by 61 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 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 dropped -6% in the past year. It has underperformed other stocks in the home improvement industry by -15 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 43, which is 7 points higher than the home improvement industry average of 36. It passed 3 out of 7 valuation due diligence checks.

Lowes Companies's stock has gained 9.94% in the past year. It has overperformed other stocks in the home improvement industry by 1 percentage points.