If you are planning to invest in stocks, the household durables sector might not spring to mind as the first choice. But this segment offers great scope for investing and can help you build a solid portfolio over time. In fact, it is one of the most lucrative and overlooked sectors. This article will tell you about the best value stock options in the household durables industry that can give you superior returns by 2022. The following stocks have been analyzed based on their risk-to-return ratio, suitability under different market conditions, and potential for long-term growth. Read on to know more about these stocks.
La-Z-Boy is a leading furniture and home accessories retailer in the US. It is one of the largest furniture retailers in the US and also operates through a network of wholesale dealers and retail stores. The company operates in North America, South America, Europe, Asia, and Australia. It has a strong presence in the US and Canada, with a growing presence in other markets. The company is expanding its product portfolio to include products such as mattresses, upholstery fabrics, and related accessories. La-Z-Boy is one of the best value stocks in the household durables sector. The company’s revenue has grown steadily at a CAGR of around 5% to 6% in the last few years. La-Z-Boy’s net profit margin has been above 10% over the last few years. La-Z-Boy has strong presence in all its business segments and has shown significant growth in its online sales. La-Z-Boy has shown a consistent increase in its dividend payout over the last five years. Its dividend yield is around 1.5%, which is a healthy sign for investors. La-Z-Boy has a Z-score of 1.58, indicating a healthy financial condition. It has a debt-equity ratio of 0.39, which is below the industry average. La-Z-Boy has an ROE of around 16%. The company’s earnings have grown at a CAGR of around 9% over the last five years. The stock is currently priced at $27.69, which is a great value for long-term investors. Considering the factors above, La-Z-Boy is a great value stock in the household durables sector.
Green Brick Partners is a real estate investment trust (REIT) focused on acquiring, managing, and optimizing retail real estate assets in the US. The company owns and operates more than 160 properties across the US, focusing on neighborhood grocery store-anchored shopping centers. Green Brick Partners has a strong presence in the US, with a growing company in Canada and Mexico. It has a significant presence in grocery and drug store-anchored shopping centers. Green Brick Partners has been able to maintain a strong track record of consistent growth in its revenue and net income over the last few years. The company’s net profit margin has been above 10% over the previous few years. Green Brick Partners has a Z-score of 1.23, which indicates a healthy financial condition. The company has a debt-equity ratio of 0.56, which is below the industry average. Green Brick Partners has an ROE of around 13%. The company’s earnings have grown at around 8% over the last five years. The stock is currently priced at $29.56, which is an excellent value for long-term investors. Considering the factors above, Green Brick Partners is an outstanding value stock in the household durables sector.
VIZIO is an American electronics company that designs and manufactures audio equipment. It is one of the largest suppliers of smart speakers in the US and operates through a network of retail stores and online sales channels. The company has a strong presence in the US, but is also seeking to expand its presence in the other developed markets such as China and India. VIZIO has shown a significant growth in its revenue and net income over the last few years. The company’s net profit margin has been above 10% over the last few years. VIZIO has a Z-score of 1.37, indicating a healthy financial condition. The company has a debt-equity ratio of 0.35, which is below the industry average. VIZIO has an ROE of around 25%. The company’s earnings have grown at a CAGR of around 15% over the last five years. The stock is currently priced at $30.12, which is a great value for long-term investors. Considering the factors above, VIZIO is a great value stock in the household durables sector.
Cavco Industries is a leading designer, manufacturer, and distributor of modular buildings in the US. It operates through a network of around 60 manufacturing facilities and distribution centers. The company’s modular buildings are used for healthcare, education, data centers, and emergency management services. Cavco Industries has a strong presence in the US, but also has a growing presence in Canada and Mexico. The company has shown a significant growth in its revenue and net income over the last few years. Cavco Industries has a Z-score of 1.85, indicating a healthy financial condition. The company has a debt-equity ratio of 0.38, which is below the industry average. Cavco Industries has an ROE of around 12%. The company’s earnings have grown at a CAGR of around 6% over the last five years. The stock is currently priced at $22.37, which is a great value for long-term investors. Considering the factors above, Cavco Industries is a great value stock in the household durables sector.
The household durables sector offers great scope for investing. The best value stocks in this sector are La-Z-Boy, Green Brick Partners, VIZIO Holding, and Cavco Industries. These companies have shown consistent growth in their revenue and net income over the last few years. They also have a Z-score of 1.58 or above, indicating a healthy financial condition. The stocks are currently priced at $27.69, $29.56, $30.12, and $22.37 respectively. Considering the factors above, these stocks can be great additions to your portfolio.
Roberto holds a Master's Degree in Communication and proudly wears his 15 years of direct and managerial experience in intensive Digital Marketing and Financial Analytics. He was the founder of Good Noon, a Digital Marketing Agency awarded by Expertise among the top 10 best marketing agencies in San Francisco in 2020.
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