Home improvement companies are having a moment.
All around the country people remain locked up at home, staring at the same four walls day in and day out because of the pandemic. The desire to improve one’s home, the need for something new and the sheer monotony of remaining indoors all day have led to a surge of interest among consumers in home improvement projects. Do-it-yourself projects and renovations are on the rise around the country. Companies that can supply customers with everything they need to spruce up their homes are enjoying impressive gains as a result. In fact, all six of the companies on this list have enjoyed tremendous growth over the last few months — and the long-term tailwind of an improving housing market gives all six of these home improvement stocks an excellent opportunity to enjoy impressive returns well into the future.
Home Depot (ticker: HD)
Thanks to the huge number of homeowners looking to do a little renovating, Home Depot’s comparable store sales shot up 23.4% year over year in the second quarter. In fact, the second quarter was a blowout across the board; the company reported a 100% increase in digital sales, as well as a 10.1% increase in the average customer ticket. Online or offline, people are turning to Home Depot for their renovation needs more than ever, and buying more per transaction — that’s a winning combination for Home Depot and its shareholders. While Home Depot’s forward price-earnings ratio sits at a relatively high 24.7, investors shouldn’t fret, given the company’s recent performance and future prospects. A 2.13% dividend yield only makes an investment in Home Depot that much sweeter.
Unlike many companies on the market, Lowe’s has had an excellent 2020. Shares have risen nearly 40% year to date, hitting