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Chicago, IL – July 14, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured in the blog are: The Home Depot, Inc. HD, Beacon Roofing Supply, Inc. BECN, Builders FirstSource, Inc. BLDR and Fastenal Company FAST.
Here are the highlights from Tuesday’s analyst blog:
Pandemic or not, these 4 home improvement stocks are looking strong
Home improvement stocks outperformed last year, thanks to the pandemic that boosted home buying and improving. In mid-2021, home improvers are still seeing increasing demand. Despite the ease of pandemic restrictions and increasing outdoor movement, Americans continue to lean toward home renovation and maintenance projects.
The prolonged indoor stint of the past year made people realize how important homes are. Industry experts believe that consumer discretionary home spending is likely to continue as the importance of properly maintaining homes here remains even after the pandemic.
Home improvement retailers have taken advantage of consumer investment to make homes a pleasant and comfortable place to be. Refurbishing interiors to enable working from home and remote education is an important trend.
Do-it-yourself (DIY) projects for remodeling, decorating, and maintaining furniture and fixtures are gaining in popularity. Home improvement products companies have witnessed increased demand for garden tools and products related to indoor hobbies such as tool boxes and paint.
Favorable housing market conditions, characterized by high home purchases, are a boon to retailers responding to home improvement needs. Low mortgage rates and high demand for homes have driven the housing market.
Rapid urbanization trends also continue to benefit players in this space. Due to the development of real estate projects and the expansion of cities and towns, the demand for both home accessories and tools and equipment remained favourable.
Home improvement retailers have also witnessed an increase in online business transactions, thanks to growing digital dependence. This helps companies take advantage of robust demand conditions in the market. Industry participants are investing in strengthening omnichannel capabilities, including online ordering and delivery services.
Given the positives in the home improvement industry, investors may want to consider investing in stocks from this space. We’ve highlighted four such companies that are benefiting from their business expansion efforts and favorable market trends.
4 Prominent Picks
First on our list is the leading home improvement retailer – The Home Depot. The company benefits from increased renovation and construction projects. It expands ranges and delivery systems to effectively meet market needs.
Home Depot follows a flexible, interconnected infrastructure, allowing it to adapt to changing customer preferences. This Zacks Rank #2 (Buy) company benefits from broad strength across stores and geographies, as well as a growing presence in the digital arena.
The company is working to boost omnichannel features such as curbside pick-up and online in-store pick-up with convenient pick-up lockers. The share has risen about 29% in one year.
The Zacks Consensus Estimate for fiscal income for 2021 is up 0.7% in the past 30 days. You can see the full list of current Zacks #1 Rank (Strong Buy) stocks here.
Beacon roofing delivery, with a Zacks Rank #2, is another potential choice. This roofing distributor is benefiting from an improved demand for residential products.
In addition, the investments in boosting the technology infrastructure support the growth of the e-commerce platform. The new OTC (On-Time and Complete) Delivery Network and redesigned website empower customers in-store and online with improved product availability, delivery tracking, and notifications.
The company is also committed to cost control. Shares of Beacon Roofing Supply are up 118.4% in one year. The Zacks Consensus Estimate for fiscal income for 2021 has been stable for the past 30 days.
Builders First SourceS is a Dallas, TX based building materials supplier and manufacturer. The company is benefiting from increased demand for its integrated services, supported by an improved housing market and a shift to suburban living.
This Zacks Rank #2 company has been active on the acquisition front, supporting revenue. It also focuses on cost control practices. The Zacks Consensus Estimate for 2021 has been stable for the past 30 days. Impressively, the stock is up about 126.2% in the past year.
Investors may also consider investing in fastenal. This Winona, MN-based wholesale distributor of industrial and construction products benefits from the installation of breakers. Furthermore, this Zacks Rank #2 company is striving to increase its portfolio of onsite locations. The company has also taken prudent cost containment measures to ease the pressure from rising operating costs.
Fastenal is also working to expand its e-commerce presence. Notably, the share has increased by about 24.5% in a year. The Zacks Consensus Estimate for 2021 earnings has been stable for the past 30 days.
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Past performance is no guarantee of future performance. Inherent in every investment is the potential for loss. This material is provided for informational purposes only and nothing contained herein constitutes an investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is made as to whether an investment is appropriate for any particular investor. It should not be assumed that investments in securities, companies, sectors or markets that have been identified and described have been or will be profitable. All information is current as of the date herein and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities. These returns come from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with no transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Please visit https://www.zacks.com/performance for information on the performance figures presented in this press release.
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Fastenal Company (FAST): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN): Free Stock Analysis Report
Builders First Source, Inc. (BLDR): Free Stock Analysis Report
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