You already know that home improvement trends increased during the height of the 2020 COVID-19 epidemic, and how homeowners have tackled home improvement projects as they spend more time at home.
Does this mean that home improvement retailers have seen their happy days? Not necessarily. The U.S. home improvement market sees the size of the home remodeling market exceed $ 340 billion by 2020 and is expected to grow at a CAGR of 4.1% between 2021 and 2027, according to Global Market Insights.
Sounds good enough to invest in, doesn’t it? Let’s dive into why you still want to invest in home improvement retailers and the three retailers you can consider.
Why invest in home improvement retailers now?
While the expected rise in interest rates this year could potentially hurt the housing market and consumer spending, spending on rent improvement property homeowners activities due to rental demand will also continue to put money into the industry.
The Home Improvement Research Institute says that in 2022 it will be easier to increase sales of home improvement products. However, according to the Institute, the total home improvement market grew by 9.9% in 2021. In 2020, the total home improvement market grew 13.8% to $ 460 billion.
In the NAHB / Royal Building Products Remodeling Market Index (RMI), the National Association of Home Builders (NAHB) published Q4 Reading 83, four points higher than Q4 2020. The NAHB Rimdaler Chair says that many Rimdalers are fully booked. In the future, however, supply chain issues continue to delay projects.
3 Consider Home Improvement Retailer
Let’s take a look at three home improvement retailers you may want to consider adding to your portfolio.
Lowe’s Company Inc. (NYSE: LOW)
Lowe’s Company Inc., based in Mooresville, North Carolina, is a home improvement retailer in the United States and internationally. The company provides products for construction, maintenance, repair and reconstruction. The company also offers independent contractors and in-warranty and out-of-warranty repair services. The company owns more than 1,900 home improvement and hardware stores.
The company reported আয় 1.2 billion for Q4 and আয় 1.78 less earnings per share (EPS) for Q4, ending January 28, 2022, compared to net income of $ 978 million. The mixed EPS for the fourth quarter of 2020 was 1.32. Q4 Liquid EPS increased 34% from $ 1.78 to E 1.33 adjusted thin EPS in Q4 2020.
Total sales in Q4 2020 were $ 20.3 billion compared to 4 21.3 billion in Q4 2020 and comparative sales increased 5%. US home improvement business comparative sales rose 5.1% in Q4 and pro customer sales rose 23%.
Home Depot (NYSE: HD)
Home Depot Inc., based in Atlanta, Georgia, is a home improvement retailer that sells building materials, home improvement products, building materials, lawn and garden products, and decor products. The company also provides installation, home maintenance and professional services.
The company offers installation programs and professional installations, equipment and equipment rental services. The company caters to the following individuals and groups:
- Professional Reformer / Reminder
- General contractors and tools
- Property Manager
- Building Services Contractor
- Special trader
Home Depot Retail Stores exist in all 50 states, District of Columbia, Puerto Rico, US Virgin Islands, Guam, 10 Canadian Provinces and Mexico.
- Sales for FY 2021 were $ 35.7 billion, $ 3.5 billion, or increased 10.7% from FY 2020 Q4.
- Comparative sales grew 8.1% in the fourth quarter of 2021, and comparative sales in the United States grew 7.6%.
- Net earnings for the 4th quarter of 2021 were $ 3.4 billion, or 3.21 per share, compared to বছরের 2.9 billion or $ 2.65 per share last year.
- Sales for fiscal year 2021 were $ 151.2 billion, an increase of $ 19 billion or 14.4% from fiscal year 2020.
- Comparative sales for FY 2021 increased 11.4% and comparative sales in the United States increased 10.7%.
- Net income for FY 2021 is $ 16.4 billion, or $ 15.53 per share, compared to $ 12.9 billion, or $ 11.94 per share in FY 2020.
Builders FirstSource Inc. (NYSE: BLDR)
Builders FirstSource Inc., based in Dallas, Texas, provides building materials, building materials and construction services to professional home builders, subcontractors and builders. The company offers wood and wood sheet products, steel roof trusses, wall panels, interior and exterior trimming and much more. The company offers gypsum, roofing and insulation products. The company provides other building products and services such as cabinets and hardware, as well as turn-key framing and professional installation services.
At the end of the year, net sales of $ 4.6 billion grew 23.7%, core organic sales grew 11.7%, total profits of $ 1.5 billion grew 52.5% and adjusted EBITDA increased 110% to $ 793.4 million. Net earnings rose 216.2% to $ 442.5 million, or $ 2.31 per share.
In Q4 2021, net sales of $ 4.6 billion for the period increased 23.7% and total profits of $ 1.5 billion increased 52.5%. Net Earnings $ 442.5 Million, or 2.31 per Mixed Share and Adjusted Net Earnings $ 532.4 Million or 2.78 per Mixed Share. Consistent EBITDA rose 110.0% to a record Q4 $ 793.4 million, driven by strong demand for commodity prices, prices and the residential housing market.
Check out these home improvement retailers
When you think about all the stocks you can invest in, you can avoid home improvement stocks. However, despite the fact that home improvement stocks have changed over the last two years, you can still benefit from them here and now and over time.
You just have to be more discriminating with the help you render toward other people. Take a quick look at these stocks and other retailers that will help you with epidemics and beyond.