Sectors & IndustriesConsumer CyclicalHome Improvement Retail

Best Home Improvement Stocks to Buy Now (2026)

Top home improvement stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% 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 6 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

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

Haverty Furniture Companies (NYSE:HVT) has a Due Diligence Score of 42, which is 6 points higher than the home improvement industry average of 36.

HVT passed 15 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 45.37% over the past year, overperforming other home improvement stocks by 63 percentage points.

Arhaus (NASDAQ:ARHS) is the #2 top home improvement stock out of 6 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Arhaus (NASDAQ:ARHS) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Arhaus (NASDAQ:ARHS) has a Due Diligence Score of 38, which is 2 points higher than the home improvement industry average of 36.

ARHS passed 14 out of 38 due diligence checks and has average fundamentals. Arhaus has seen its stock return 12.5% over the past year, overperforming other home improvement stocks by 30 percentage points.

Arhaus has an average 1 year price target of $10.71, a downside of -8.43% from Arhaus's current stock price of $11.70.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Arhaus, 71.43% have issued a Strong Buy rating, 0% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Home Depot (NYSE:HD) is the #3 top home improvement stock out of 6 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Home Depot (NYSE:HD) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Home Depot (NYSE:HD) has a Due Diligence Score of 52, which is 16 points higher than the home improvement industry average of 36.

HD passed 19 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock lose -16.93% over the past year, overperforming other home improvement stocks by 1 percentage points.

Home Depot has an average 1 year price target of $374.44, an upside of 17.08% from Home Depot's current stock price of $319.83.

Home Depot stock has a consensus Buy recommendation according to Wall Street analysts. Of the 20 analysts covering Home Depot, 55% have issued a Strong Buy rating, 10% have issued a Buy, 35% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 4 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 4.47%, which is 1 percentage points higher than the home improvement industry average of 3.21%. 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 not shown consistent growth over the last 10 years.

Haverty Furniture Companies's dividend payout ratio of 92.3% indicates that its high dividend yield might not be sustainable for the long-term.

Arhaus (NASDAQ:ARHS) has an annual dividend yield of 2.99%, which is the same as the home improvement industry average of 3.21%.

Arhaus's dividend payout ratio of 70% indicates that its dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 2.9%, which is the same as the home improvement industry average of 3.21%. 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 64.7% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were down -2.24% in the last day, and up 2.89% over the last week. Lowes Companies was the among the top losers in the home improvement retail industry, dropping -2.78% yesterday.

Shares of retail companies are trading lower, possibly in response to flat October Michigan Consumer Sentiment data, which could suggest inflation will persist.

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 14 points higher than the home improvement industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 45.37% in the past year. It has overperformed other stocks in the home improvement industry by 63 percentage points.

Lowes Companies (NYSE:LOW) is the second 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.

Lowes Companies has a valuation score of 29, which is 0 points higher than the home improvement industry average of 29. It passed 2 out of 7 valuation due diligence checks.

Lowes Companies's stock has dropped -18.53% in the past year. It has underperformed other stocks in the home improvement industry by -1 percentage points.

Home Depot (NYSE:HD) 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.

Home Depot has a valuation score of 29, which is 0 points higher than the home improvement industry average of 29. It passed 2 out of 7 valuation due diligence checks.

Home Depot's stock has dropped -16.93% in the past year. It has overperformed other stocks in the home improvement industry by 1 percentage points.

75% of home improvement stocks rated by analysts are a buy right now. On average, analysts expect home improvement stocks to rise by 20.8% over the next year.

0% of home improvement stocks have a Zen Rating of A (Strong Buy), 20% of home improvement stocks are rated B (Buy), 80% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).