Bacchuskirksf

10 Best Furniture Stocks to Buy Now

In this article, we discuss the 10 most popular stocks to buy right now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Furniture Stocks to Buy Now.

During the lockdown, the home furniture industry capitalized from the spike in consumer demand for furnishings as idled stay-at-home buyers sought to re-furnish their houses. Consumer spending patterns shifted as offices encouraged employees to work from home. According to Deloitte’s data, the personal consumption expenditure in durable goods, including furnishings, durable household equipment, home gym machine, and home office equipment, in the US has increased 6.3% in 2020, up from 4.8% in the previous year.

In 2020, the home improvement and repair spending grew by approximately 3% to $420 billion, according to a study by the Joint Center For Housing Studies of Harvard University. Some of the biggest names in the furniture industry that benefited during the pandemic are Bassett Furniture Industries, Incorporated (NASDAQ: BSET), Herman Miller, Inc. (NASDAQ: MLHR), Leggett & Platt, Incorporated (NYSE: LEG), and HNI Corporation (NYSE: HNI), as recent earnings show.

Even though the furniture and home improvement sectors made money last year, Credit Suisse analyst Seth Sigman is bullish on the industry for at least the next year. Based on a McKinsey & Company survey, even in the post-pandemic period, 30% of consumers intend to spend money on home-related items. The continuous surge in demand was evidenced in the recent earnings figure of The Home Depot, Inc. (NYSE: HD) and Wayfair Inc. (NYSE: W).

In the first quarter of 2021, The Home Depot, Inc.’s (NYSE: HD) revenue came in at $37.5 billion, an increase of 32.7% year over year and beating revenue estimates of $34.96 billion. The home improvement behemoth recorded a 19.3% growth in consumer transactions to 447.2 million. For the quarter, same-store sales increased by 31% globally, while e-commerce revenue increased by 27%. The stock has gained 31% year to date, and shares increased 19% in the last twelve months.

Another furniture stock market analysts are bullish on is Boston-based online furniture retailer Wayfair Inc. (NYSE: W). Jefferies analyst Jonathan Matuszewski maintained a buy rating on Wayfair Inc. (NYSE: W) with a price target of $330 per share, following the company’s solid Q2 report. The company’s second-quarter revenue came in at $3.9 billion. On August 5, Wayfair Inc. (NYSE: W) stock jumped 6.60% in premarket trading after the company reported a higher profit than expected.

10 Best Furniture Stocks to Buy Now

InnaFelker/Shutterstock.com

Our Methodology

The stocks on our list were picked based on their fundamentals and prospects for growth based on key business characteristics. We also took into account analyst ratings and future potential.

We ranked these furniture stocks based on the number of hedge funds having stakes in them, based on our data of over 866 hedge funds.

Why pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29, 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s look at the 10 best furniture stocks to buy now.

Best Furniture Stocks to Buy Now

10. Bassett Furniture Industries, Incorporated (NASDAQ: BSET)

Number of Hedge Fund Holders: 9

We start our list of the 10 best furniture stocks to buy now with Bassett Furniture Industries, Incorporated (NASDAQ: BSET). The Virginia-based furniture company, which was founded in 1902, has evolved to become one of the most prominent furniture manufacturers in the US and Puerto Rico. As of July 2021, Bassett Furniture Industries, Incorporated (NASDAQ: BSET) operated a network of 97 company- and licensee-owned stores.

On July 15, Bassett Furniture Industries, Incorporated (NASDAQ: BSET) raised its quarterly dividend by 12%, announcing a $0.14 per share dividend payable on August 27, 2021. Shares of Bassett Furniture Industries, Incorporated (NASDAQ: BSET) jumped 13%, year to date.

In April, the furniture manufacturer announced that it would expand its operations in North Carolina, leasing a 123,000-square-foot production facility that would launch operations in June 2021 and ramp-up in Q3. On April 27, Noble Capital analyst Joe Gomes maintained an Outperform rating on Bassett Furniture Industries, Incorporated (NASDAQ: BSET) and increased the firm’s price target to $32 per share from the previous $28. The stock has gained 141% in the last twelve months.

The company has a market cap of $221.64 million. In the second quarter of 2021, Bassett Furniture Industries, Incorporated (NASDAQ: BSET) reported an EPS of $0.60, beating estimates by $0.25. The company’s second-quarter revenue grew 94% year over year to $124.1 million, beating revenue estimates by $7.9 million.

At the end of the first quarter of 2021, 9 hedge funds from our database held stakes in Bassett Furniture Industries, Incorporated (NASDAQ: BSET). The total value of these positions amounted to approximately $42.7 million, down from 11 hedge funds worth $40.3 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc. (NASDAQ: MLHR), and Leggett & Platt, Incorporated (NYSE: LEG), Bassett Furniture Industries, Incorporated (NASDAQ: BSET) is one of the best furniture stocks to buy now according to market analysts.

9. HNI Corporation (NYSE: HNI)

Number of Hedge Fund Holders: 12

HNI Corporation (NYSE: HNI) is an Iowa-based office furnishings manufacturer that ranks 9th on our list of the 10 best furniture stocks to buy now. The company distributes furniture products in the US, Canada, China, Singapore, Hong Kong, Taiwan, and Dubai.

In May, HNI Corporation (NYSE: HNI) increased its quarterly dividend by 1.6%, announcing a $0.31 per share dividend. The stock currently offers a dividend yield of 3.21%. Shares of HNI Corporation (NYSE: HNI) climbed 11.5%, year to date.

On March 8, Sidoti & Co. analysts upgraded HNI Corporation (NYSE: HNI) to a Buy from a neutral rating, with a price target of $48 per share.

The company has a market cap of $1.59 billion. In the second quarter of 2021, HNI Corporation (NYSE: HNI) reported an EPS of $0.40, beating estimates by $0.18. The company’s second-quarter revenue grew 22.3% year over year to $510.5 million, beating revenue estimates by $17.02 million. On July 29, the HNI Corporation (NYSE: HNI) announced its consensus revenue of $567.2 million in the third quarter of 2021. The stock has gained 4% in the last five days.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in HNI Corporation (NYSE: HNI) worth $44.2 million, up from 10 hedge funds worth $30.7 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc. (NASDAQ: MLHR), and Leggett & Platt, Incorporated (NYSE: LEG), HNI Corporation (NYSE: HNI) is one of the best furniture stocks to buy now according to market analysts.

8. American Woodmark Corporation (NASDAQ: AMWD)

Number of Hedge Fund Holders: 14

American Woodmark Corporation (NASDAQ: AMWD) is a Virginia-based cabinet maker and it ranks 8th on the list of 10 best furniture stocks to buy now. American Woodmark Corporation (NASDAQ: AMWD) has 17 manufacturing sites and 18 service centers, that can produce over 41,000 cabinets per day and more than 10 million cabinets annually.

On July 22, Loop Capital analyst Garik Shmois upgraded American Woodmark Corporation (NASDAQ: AMWD) to a Buy rating from Hold and increased the firm’s price target to $100 per share from the previous $94. The analyst emphasized that the company’s revenue growth persisted heading into the second quarter, while dealer traffic levels remained high.

The company has a market cap of $1.21 billion. In the fourth quarter of 2021, American Woodmark Corporation (NASDAQ: AMWD) reported an EPS of $1.28, missing estimates by -$0.43. However, the company’s revenue increased 21.4% over the last four quarters to $473.4 million and beating revenue estimates by $9.6 million.

By the end of the first quarter of 2021, 14 hedge funds followed by Insider Monkey held stakes in American Woodmark Corporation (NASDAQ: AMWD) with a total value of $51.3 million, up from 11 hedge funds worth $45.2 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc. (NASDAQ: MLHR), and Leggett & Platt, Incorporated (NYSE: LEG), American Woodmark Corporation (NASDAQ: AMWD) is one of the best furniture stocks to buy now according to market analysts.

7. Kimball International, Inc. (NASDAQ: KBAL)

Number of Hedge Fund Holders: 16

Kimball International, Inc. (NASDAQ: KBAL) is an Indiana-based furniture company and it ranks 7th on the list of 10 best furniture stocks to buy now. The company was founded in 1939 and was formerly called The Jasper Corporation.

Kimball International, Inc. (NASDAQ: KBAL) closed its $180 million acquisition of Poppin Inc., a commercial furniture design firm based in New York, in December 2020. Shares of Kimball International, Inc. (NASDAQ: KBAL) rose 4% in the last year.

On May 11, Berenberg analyst Rudy Yang initiated Kimball International, Inc. (NASDAQ: KBAL) with a Buy rating and a $17 price target, citing the company’s recent huge market share in healthcare facilities, work-from-home settings, and acquisitions as revenue drivers.

The company has a market cap of $454.6 million. In the fourth quarter of 2021, Kimball International, Inc. (NASDAQ: KBAL) reported an EPS of $0.6, beating estimates by $0.5. The company’s fourth-quarter revenue came in at $146.2 million, beating revenue estimates by $6.9 million. The stock has gained 3% year to date.

By the end of the first quarter of 2021, 16 hedge funds followed by Insider Monkey held stakes in Kimball International, Inc. (NASDAQ: KBAL) with a total value of $47.8 million.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc. (NASDAQ: MLHR), and Leggett & Platt, Incorporated (NYSE: LEG), Kimball International, Inc. (NASDAQ: KBAL) is one of the best furniture stocks to buy now according to market analysts.

6. Herman Miller, Inc. (NASDAQ: MLHR)

Number of Hedge Fund Holders: 18

Herman Miller, Inc. (NASDAQ: MLHR) is a Michigan-based interior furnishings producer and it ranks 6th on the list of 10 best furniture stocks to buy now. Herman Miller, Inc. (NASDAQ: MLHR) sells everything from office chairs to workstations, gaming set-ups, and clinical supply carts and systems.

In April 2021, Herman Miller, Inc. (NASDAQ: MLHR) announced its $1.8 billion acquisition of Knoll, a modern furniture firm based in New York, which is scheduled to close in Q3 2021. Shares of Herman Miller, Inc. (NASDAQ: MLHR) jumped 10% in the last six months.

On June 30, Benchmark analyst Reuben Garner maintained a Buy rating on Herman Miller, Inc. (NASDAQ: MLHR) and increased the firm’s price target to $61 per share from the previous $50, noting a solid close to the company’s FY21.

The company has a market cap of $2.51 billion. In the fourth quarter of 2021, Herman Miller, Inc. (NASDAQ: MLHR) reported an EPS of $0.56, beating the consensus of $0.39. The company’s revenue in the fourth quarter came in at $621.5 million, increasing 30% year over year and beating revenue estimates by $38.46 million. The company’s revenue from home office and workplace-related products grew 213% year over year. The stock has gained 61% in the past twelve months.

By the end of the first quarter of 2021, 18 hedge funds followed by Insider Monkey held stakes in Herman Miller, Inc. (NASDAQ: MLHR) with a total value of $91.3 million.

In its Q1 2021 investor letter, ClearBridge Investments mentioned Herman Miller, Inc. (NASDAQ: MLHR) and shared their insights on the company. Here is what the fund said:

“Our exposure to small-cap industrials names was also beneficial. Herman Miller, a manufacturer of sustainable design and ergonomic furniture for home, office — and this year especially, home office use — enjoyed significant retail sales growth in the quarter as well as good results from international sales.”

Click to continue reading and see the 5 Best Furniture Stocks to Buy Now.

Suggested Articles:

Disclosure. None. 10 Best Furniture Stocks to Buy Now is originally published on Insider Monkey.