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:

Lowes Companies (NYSE:LOW) is the top home improvement stock with a Zen Score of 48, which is 19 points higher than the home improvement industry average of 29. It passed 17 out of 38 due diligence checks and has strong fundamentals. Lowes Companies has seen its stock return 35% over the past year, overperforming other home improvement stocks by 3 percentage points.

Lowes Companies has an average 1 year price target of $265.21, a downside of -1.85% from Lowes Companies's current stock price of $270.21.

Lowes Companies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Lowes Companies, 42.11% have issued a Strong Buy rating, 5.26% have issued a Buy, 52.63% 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 45, which is 16 points higher than the home improvement industry average of 29. It passed 14 out of 33 due diligence checks and has strong fundamentals. Arhaus has seen its stock return 18.99% over the past year, underperforming other home improvement stocks by -13 percentage points.

Arhaus has an average 1 year price target of $15.67, an upside of 47.94% from Arhaus's current stock price of $10.59.

Arhaus stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Arhaus, 44.44% have issued a Strong Buy rating, 44.44% have issued a Buy, 11.11% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Home Depot (NYSE:HD) is the third best home improvement stock with a Zen Score of 43, which is 14 points higher than the home improvement industry average of 29. It passed 15 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock return 40.98% over the past year, overperforming other home improvement stocks by 9 percentage points.

Home Depot has an average 1 year price target of $398.21, a downside of -3.25% from Home Depot's current stock price of $411.58.

Home Depot stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Home Depot, 57.89% have issued a Strong Buy rating, 10.53% have issued a Buy, 26.32% have issued a hold, while 5.26% 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 8.68%, which is 5 percentage points higher than the home improvement industry average of 3.98%. 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 92.5% indicates that its high dividend yield might not be sustainable for the long-term.

Lowes Companies (NYSE:LOW) has an annual dividend yield of 1.65%, which is -2 percentage points lower than the home improvement industry average of 3.98%. 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 36.7% indicates that its dividend yield is sustainable for the long-term.

Home Depot (NYSE:HD) has an annual dividend yield of 1.6%, which is -2 percentage points lower than the home improvement industry average of 3.98%. 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 43.1% indicates that its dividend yield is sustainable for the long-term.

Home improvement stocks were down -0.51% in the last day, and up 1.65% 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:

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 46 points higher than the home improvement industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Arhaus's stock has gained 18.99% in the past year. It has underperformed other stocks in the home improvement industry by -13 percentage points.

Tile Shop Holdings (NASDAQ:TTSH) is the second most undervalued home improvement stock based on WallStreetZen's Valuation Score. Tile Shop Holdings has a valuation score of 43, which is 18 points higher than the home improvement industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Tile Shop Holdings's stock has gained 20.46% in the past year. It has underperformed other stocks in the home improvement industry by -12 percentage points.

Haverty Furniture Companies (NYSE:HVT) is the third most undervalued home improvement stock based on WallStreetZen's Valuation Score. Haverty Furniture Companies has a valuation score of 43, which is 18 points higher than the home improvement industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has dropped -8.93% in the past year. It has underperformed other stocks in the home improvement industry by -41 percentage points.