The whole of 2020 has been all about social distancing and staying at home to minimize the spread of COVID-19. With people spending more time and home, they have realized various issues with their homes that they had not realized people. A person is aware of which part of their home requires renovation. The demand for home renovation has played out well for many companies since more people are ordering and purchasing home renovation supplies. However, since the introduction of vaccines early this year, the demand is projected to decrease, and the year will pick up the pace. People will be spending more time outside socializing and working. That means some companies’ sales might diminish, and their stock prices may also fall. However, there are still other home improvement companies showing the potential and have continued to grow in 2021. Let’s take a closer look at these companies.
The best-known Home Depot is still gaining from the demand for renovation projects even with the pandemic. The company has been doing deliveries across the various areas they operate and has been effective in meeting market needs. It has been aiming to meet consumers’ needs in two categories; professional customers and DIY customers.
Early in March, Home Depot established new cordless equipment that aims at serving customers from both categories. The equipment is efficient, battery-powered and thus brings environmental benefits. The Directors declared a quarter annual dividend of $1.65% that was paid by March 2021. Since the end of the year-over-year in 2021 January, HD sales have increased by 25.1 %, equivalent to $32.26 billion. Its year-over-year profit has also risen to 24 %, and compared to 2020, HD sales and earnings show a potential rise of 0.5% and 4.2% correspondingly.
Beacon Roofing Supply
This is another company that has shown potential growth in 2021. According to statistics, the roofing company had a capital of $2.81 billion in 2020, and this has continued to rise. The gain is a result of a high rate of demand for residential items and services. Moreover, it has invested in boosting technological infrastructure, providing ample support from e-commerce platforms.
Beacon has also shown its commitment to cost management, and the shares have gained over 26% over the year. The earnings and sales show a rise of 22% and 3% respectively.
This is the second-largest retailer for home improvement products, and surprisingly, the company grew faster last year compared to Home Depot. This was due to the exposure of its DIY customers who account for up to 80% of the sales. This has put Lowe’s in a better position this year. It has become a favorite stock in 2021 and has benefited a lot from various factors like low interest rates for home improvement funds, COVID-19 payment for stimulus, and personal savings.
Lowe’s reported an increased net worth of 42.3 billion and earnings of $3.2 per share early last month. Compared to the $1.76 per share and net revenues of $1.3 billion, it is very clear that this is the most rising stock of 2021. The total sales of the first quarter of this year were $ 24.4 billion compared to $ 19.7 billion last year. From this growth, Lowe’s shows its ability to speed up the market share advantages and drive in more improvement.
Harvey Furniture Companies
The companies operate as retailers of residential accessories and furniture and sell their products through their physical retail stores as well as through the website. Its main work is to provide custom furniture products and mattresses backed by brands like Serta, Tempur-Pedic, and others. People also get finances through third parties.
According to the Board of Directors, HTV’s paid a total dividend of $0.22 per share while other regular companies were paying $0.20 per share. By the end of the last quarter in 2020, the company has a net sale of almost 13%, amounting to $241.3 million and a profit of $ 17.62 million. By the end of the first quarter in 2021, the company’s net income has already increased by $25.43 million. By the end of the next quarter that will be ending on June 30, analysts expect the revenue of HTV’s to be at $197.51 million, representing a rise of 79.6% from last year.
To be precise, these are not the only home improvement stocks that are still rising in 2021. There are more companies experiencing growth and expected to bring out better returns and dividends by the end of the year. So, if you are about to invest in home improvement stocks, consider the above.