Top 3 Home Improvement Chains and Stocks-A Historical Trend Analysis

The home improvement company chains consist of one company with several branches providing the same service. This sector involves the provision of home improvement products, building materials, and DIY repairs to contractors and consumers. In most cases, the stores operate in a warehouse manner. The products sold in such companies include lumber materials, HVAC, lighting products, roofing supplies, and plumbing materials. These companies also provide shares to consumers where they get to benefit from dividends earned from the number of shares bought. The following is a historical analysis of the top 3 home improvement company chains and stocks.

Home Depot
This is a giant retailer of home improvement in the US that has been operating for decades. Today, the company has opened over 2,300 stores. In 2019, HD operated more than 15 distribution centers in the US and in Canada. The company was founded in 1978, and by March 2020, the company had already established over 2,300 stores across the US, Canada, and Mexico. However, in 2012, HD was forced to close its stores in China after it failed to expand successfully.
For the last few years, HD had always been known to lag behind its rivals when it came to managing its supply chain. Before, HD had a devolved chain of supply where suppliers brought the items directly to Home Depot warehouses. Although this approach has its advantages, it also came with significant setbacks like having to use trucks and a lot of fuel to transport even the small items. In 2007, HD realized this and started coming up with a modern and centralized approach to supply. Up to date, the company has been committed to managing the modernized supply chain.
In 2020, HD invested a total of $1.2 billion in improving distribution management by creating large distribution centers across the US. This is with a high hope that the approach will fasten the delivery of the home improvement products directly to their customers. Since 2020, the company has shown full dedication to improving its services and aims to reach up to 90% of its customers with next-day and same-day deliveries.

Lowe’s is another company that has experienced exponential growth in its operations as well as the stock market. Due to its competition with Home Depot, Lowe’s closed some of its underperforming stores in the US and Canada. However, the company has been focused on improving its sales and services through new leadership. With almost an annual revenue of $90 billion, Lowe’s has become the second-largest home improvement company after Home Depot.
Most of the materials supplied by the company are plumbing and electrical materials, bathroom fixtures, building materials, lumber, garden and lawn, flooring, painting, kitchen, and more. Today, Lowe’s has registered diluted growth earnings of 82.1 % and $3.21 per share. So, as people continue to get vaccinated, spending may rise, which means a rise in dividends at Lowe’s.

Floor and Décor Holdings Inc.
This company offers hard surface flooring solutions and relevant items. It offers stone, wood, and other flooring products. These products include laminate, tile, and vinyl for installation in bathrooms, living rooms, kitchen, and more. This company was founded in 2000 by George Vincent, and its headquarters are in Atlanta, GA.
The company has employed over 8000 employees and stands at a rate of $0.71 per share. Currently, its stock price is $96.36, and earnings are predicted to grow by 21.82% per year. Floor & Décor has shown growth, with earnings increasing by 28.5% over the last five years.
Over time, the company has been able to build a range of warehouse stores that has enabled it to display inspirational items. It combines low prices and product breadth, and other factors to their customer services to gain a share in the market.

These are the top 3 home improvement chains of business and stocks you can invest in in 2021. The article has briefly explained their history and how much they have done to deliver excellent customer services. Their stocks are promising, and if you need anything to do with home improvement, it might be true that you will need to order from any of the three companies. These companies have adopted almost similar strategies of pursuing the customer base. The major objective shared by the companies is making sure their services are as excellent as possible and remain active online. This gives the customers the freedom of choosing whether to operate with offline or online channels.

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