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 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 4 points higher than the home improvement industry average of 39.

HVT passed 15 out of 38 due diligence checks and has strong fundamentals. Haverty Furniture Companies has seen its stock return 23.96% over the past year, overperforming other home improvement stocks by 36 percentage points.

Home Depot (NYSE:HD) 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 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 10 points higher than the home improvement industry average of 39.

HD passed 18 out of 38 due diligence checks and has strong fundamentals. Home Depot has seen its stock lose -10.71% over the past year, overperforming other home improvement stocks by 1 percentage points.

Home Depot has an average 1 year price target of $374.17, an upside of 10.04% from Home Depot's current stock price of $340.02.

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.

Floor & Decor Holdings (NYSE:FND) 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 Floor & Decor Holdings (NYSE:FND) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: C.

Floor & Decor Holdings (NYSE:FND) has a Due Diligence Score of 29, which is -10 points lower than the home improvement industry average of 39.

FND passed 9 out of 33 due diligence checks and has average fundamentals. Floor & Decor Holdings has seen its stock lose -29.91% over the past year, underperforming other home improvement stocks by -18 percentage points.

Floor & Decor Holdings has an average 1 year price target of $60.23, an upside of 5.52% from Floor & Decor Holdings's current stock price of $57.08.

Floor & Decor Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Floor & Decor Holdings, 23.08% have issued a Strong Buy rating, 7.69% have issued a Buy, 69.23% 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 5.07%, which is 1 percentage points higher than the home improvement industry average of 3.63%. 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 103.2% indicates that its high dividend yield might not be sustainable for the long-term.

Arhaus (NASDAQ:ARHS) has an annual dividend yield of 4.43%, which is 1 percentage points higher than the home improvement industry average of 3.63%.

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

Home Depot (NYSE:HD) has an annual dividend yield of 2.72%, which is -1 percentage points lower than the home improvement industry average of 3.63%. 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 2.12% in the last day, and up 1% 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 43, which is 17 points higher than the home improvement industry average of 26. It passed 3 out of 7 valuation due diligence checks.

Haverty Furniture Companies's stock has gained 23.96% in the past year. It has overperformed other stocks in the home improvement industry by 36 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 -12 points higher than the home improvement industry average of 26. It passed 1 out of 7 valuation due diligence checks.

Lowes Companies's stock has dropped -9.3% in the past year. It has overperformed other stocks in the home improvement industry by 3 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 3 points higher than the home improvement industry average of 26. It passed 2 out of 7 valuation due diligence checks.

Arhaus's stock has dropped -12.42% in the past year. It has performed in line with other stocks in the home improvement industry.

75% of home improvement stocks rated by analysts are a buy right now. On average, analysts expect home improvement stocks to rise by 14.22% 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).