Retail stocks were harshly affected by the pandemic when it arrived. Some retail companies were able to perform well like Target Corporation (TGT Stock Report) and Walmart Inc. (WMT Stock Report). This was due to them staying open despite the worldwide closures of retail stores. It seems like home improvement companies were able to see the same benefits as the companies mentioned above.
This is due to the large increase in home improvement during the quarantine. Since people are or were stuck at home, home improvement has been the main focus for plenty with nothing else to do. So the top home improvement retail stocks being open for the majority of 2020 has caused them to perform well. E-commerce is still growing larger than the retail industry, but there are many home improvement products that consumers prefer to purchase in person. Let’s look at a few home improvement retail stocks that have been trending upwards in the market.
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First, we must discuss The Home Depot Inc. (HD Stock Report) as it is one of the leaders in the industry. The Home Depot is reported as the largest home improvement retail company in the United States. Home Depot’s stores supply things like tools, equipment, construction items, wood, and more. The company has a plethora of locations in several places around North America. On August 18th, the second-quarter results for the company were released.
The world’s largest home improvement retailer reported that its sales for the second quarter were $38.1 billion. This is a 23.4 percent increase year over year for the company. Its sales were up 23.4 percent, and comparable US sales were up 25%.
The CEO of the company, Craig Menear said, “The investments we have made across the business have significantly increased our agility, allowing us to respond quickly to changes while continuing to promote a safe operating environment. This enhanced our team’s ability to work cross-functionally to better serve our customers and deliver record-breaking sales in the quarter.”
The company’s ability to quickly adapt resulted in its stock price increasing more than 25% in 2020 as of September 22nd.Top Home Improvement Retail Stocks To Buy [Or Sell] Right Now: Lowe’s Companies Inc.
Next up on this list of home improvement retail stocks to watch is Lowe’s Companies Inc. (LOW Stock Report). Lowe’s is a home improvement retail company with more than 2000 locations in North America. The company is the actively second-biggest home improvement company in the United States behind The Home Depot. Currently, Lowe’s employs more than 300,000 people. This pandemic has treated LOW stock price rather positively in 2020 just like HD stock.
August 19th came around, and Lowe’s presented its second quarter results for 2020. The company’s sales in the quarter were $27.3 billion, much higher than the $21 billion it made the previous year. Its comparable sales increased by 34.2 percent in total. The company also invested $460 million into supporting frontline hourly associates, communities, and store safety. Lowe’s has also invested $560 million into COVID-related financial support for employees and $100 million in community relief. This positive momentum has caused LOW stock to increase by more than 35% to $161 a share as of September 22nd.Top Home Improvement Retail Stocks To Buy [Or Sell] Right Now: Floor & Decor Holdings Inc.
Last but not least on this list of home improvement retail stocks is Floor & Decor Holdings Inc. (FND Stock Report). Floor & Decor is a retail company with a focus on selling hard surface flooring and related items. Some of its offerings include tile, wood, laminate, and natural stone flooring products. Additionally, it sells decorative and installation accessories for its products. The company operates 100 warehouse stores and a standalone design center in 28 states.
Despite being a home improvement company, not everything has been sunshine and rainbows for the company. In its second-quarter results released in July, its net sales decreased 11.1% year over year. Its comparable-store sales decreased by 20.8% year over year as well. Its stores are now in full operation and expect its store sales to increase 16% year over year in its third quarter. This has caused FND stock to perform well despite the effects of the pandemic. FND stock price is up 48% in 2020. That is why it is on this list of the top home improvement retail stocks to buy or sell.