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:

Arhaus (NASDAQ:ARHS) is the #1 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 42, which is 4 points higher than the home improvement industry average of 38.

ARHS passed 16 out of 38 due diligence checks and has strong fundamentals. Arhaus has seen its stock lose -19.93% over the past year, underperforming other home improvement stocks by -12 percentage points.

Arhaus has an average 1 year price target of $9.61, an upside of 0.07% from Arhaus's current stock price of $9.60.

Arhaus stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Arhaus, 42.86% have issued a Strong Buy rating, 0% have issued a Buy, 57.14% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Haverty Furniture Companies (NYSE:HVT) 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 Haverty Furniture Companies (NYSE:HVT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Haverty Furniture Companies (NYSE:HVT) has a Due Diligence Score of 43, which is 5 points higher than the home improvement industry average of 38.

HVT passed 15 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 36.77% over the past year, overperforming other home improvement stocks by 45 percentage points.

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 49, which is 11 points higher than the home improvement industry average of 38.

HD passed 18 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock lose -7.91% over the past year.

Home Depot has an average 1 year price target of $374.17, an upside of 5.22% from Home Depot's current stock price of $355.62.

Home Depot stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Home Depot, 55.56% have issued a Strong Buy rating, 16.67% have issued a Buy, 27.78% 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 4.5%, which is 1 percentage points higher than the home improvement industry average of 3.23%. 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 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 3.65%, which is the same as the home improvement industry average of 3.23%.

Arhaus's dividend payout ratio of 74.5% indicates that its dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 2.6%, which is -1 percentage points lower than the home improvement industry average of 3.23%. 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 65.4% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were up 2.05% in the last day, and up 7.96% over the last week.

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

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 C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Haverty Furniture Companies has a valuation score of 29, which is 5 points higher than the home improvement industry average of 24. It passed 2 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 36.77% in the past year. It has overperformed other stocks in the home improvement industry by 45 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 14, which is -10 points higher than the home improvement industry average of 24. It passed 1 out of 7 valuation due diligence checks.

Lowes Companies's stock has dropped -6.38% in the past year. It has overperformed other stocks in the home improvement industry by 2 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 29, which is 5 points higher than the home improvement industry average of 24. It passed 2 out of 7 valuation due diligence checks.

Arhaus's stock has dropped -19.93% in the past year. It has underperformed other stocks in the home improvement industry by -12 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 8.29% 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), 100% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).