Sectors & IndustriesConsumer CyclicalHome Improvement Retail

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.

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

Haverty Furniture Companies (NYSE:HVT) is the top home improvement stock with a Zen Score of 56, which is 17 points higher than the home improvement industry average of 39. It passed 20 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 10.1% over the past year, overperforming other home improvement stocks by 23 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.

Arhaus (NASDAQ:ARHS) is the second best home improvement stock with a Zen Score of 51, which is 12 points higher than the home improvement industry average of 39. It passed 17 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock return 10.2% over the past year, overperforming other home improvement stocks by 23 percentage points.

Arhaus has an average 1 year price target of $12.29, an upside of 47.67% from Arhaus's current stock price of $8.32.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Arhaus, 57.14% have issued a Strong Buy rating, 28.57% have issued a Buy, 14.29% 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 Zen Score of 45, which is 6 points higher than the home improvement industry average of 39. It passed 16 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock lose -14.14% over the past year, underperforming other home improvement stocks by -1 percentage points.

Lowes Companies has an average 1 year price target of $224.62, an upside of 18.41% from Lowes Companies's current stock price of $189.69.

Lowes Companies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 22 analysts covering Lowes Companies, 36.36% have issued a Strong Buy rating, 9.09% have issued a Buy, 50% have issued a hold, while 4.55% 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 6.87%, 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% 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 38.5% indicates that its high dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 2.74%, 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 46.5% indicates that its dividend yield is sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 2.08%, 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 36% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were down -0.22% in the last day, and down -2.39% over the last week.

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

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

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 31 points higher than the home improvement industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 10.1% in the past year. It has overperformed other stocks in the home improvement industry by 23 percentage points.

Leslie's (NASDAQ:LESL) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Leslie's has a valuation score of 57, which is 17 points higher than the home improvement industry average of 40. It passed 4 out of 7 valuation due diligence checks.

Leslie's's stock has dropped -46.66% in the past year. It has underperformed other stocks in the home improvement industry by -34 percentage points.

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 17 points higher than the home improvement industry average of 40. It passed 4 out of 7 valuation due diligence checks.

Tile Shop Holdings's stock has dropped -32.99% in the past year. It has underperformed other stocks in the home improvement industry by -20 percentage points.