© Reuters. 4 Buying home improvement stocks on dips
Many organizations continue to adopt mixed work structures as a long-term measure, which has been motivating people to upgrade or renovate their homes. This, together with the hot housing market, is expected to maintain the demand for home improvement products. Therefore, we think it might be wise to bet on home improvement stocks Lowe’s (LOW), Stanley Black & Decker (SWK), Mohawk (MHK) and Snap-on (NYSE:). Their current trading prices are lower than their recent highs. Let’s discuss it. The remote work culture brought about by the COVID-19 pandemic is a boon for the home improvement industry, as people prioritize upgrading their houses or moving to larger living spaces in the suburbs. Although the reopening of the economy has reduced the demand for home improvement products to a certain extent, as people focus on outdoor activities, the continued adoption of a mixed work structure by organizations should drive their employees’ continued spending on home improvement.
The hot property market and the trend of buying old houses should continue to drive demand for home improvement products and services. According to the recently released joint market research report, the global home improvement service market is expected to grow at a compound annual growth rate of 6.2% from 2021 to 2030.
With the decline in the unemployment rate, the increase in disposable income should further support the growth of the home improvement industry. Therefore, we believe that the fundamentals of home improvement stocks Lowe’s Companies, Inc. (NYSE:), Stanley Black & Decker, Inc. (SWK), Mohawk Industries , Inc. (NYSE:) and Snap-on Incorporated (SNA) prices have now fallen from their recent highs and may now be reliable bets.
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