Companies that cater to home improvement needs are in an advantageous position as people continue to restyle their homes and execute maintenance projects even as the economy reopens, and pandemic distancing mandates are removed. Also, a growing consumer preference for smart and energy-efficient home appliances is expected to further propel the home improvement industry’s growth. So, we think home improvement retailers Home Depot (HD), Lowe's Company (NYSE:LOW), and Sherwin-Williams (SHW) are well positioned to generate solid growth this year and beyond. Read on.The COVID-19-pandemic-induced requirement that people spend more time indoors at their homes, and the motivation to remodel houses to suit work, school, and leisure purposes, continue to drive the home improvement industry’s growth. This trend is expected to continue because consumers who gained confidence in their house remodeling skills may well spend even more on revamping their existing spaces. In fact, a rising preference for luxurious and energy-efficient living spaces is also contributing significantly to the sector’s growth.
The global home improvement market is expected to reach $1207.80 billion by 2027, growing at a 4.5% CAGR from $887.53 billion in 2020. The rapid pace of urbanization, coupled with rising disposable income, is also expected to bolster the industry’s growth.
Because the demand for home improvement goods and services is increasing across all households, home improvement companies The Home Depot Inc. (NYSE:HD), Lowe’s Company, Inc. (LOW), and The Sherwin-Williams Company (NYSE:SHW) are expected to thrive this year and beyond. So, we think it could be wise to bet on these stocks now.