4 Top Furniture Industry Stocks To Buy Amid Solid Housing & R&R Trend

Increasing investments in residential buildings accompanied with technological advancements and solutions are expected to drive growth for the Zacks Furniture industry. Although spikes in COVID-19 cases, continued investments in e-commerce, and intense competition might keep margins under pressure, an improved housing market scenario in the United States, product innovation and accretive buyouts should favor the furniture industry. Apart from these tailwinds, efficient cost management should lend support to Bassett Furniture Industries, Incorporated (BSET Quick Quote BSET - Free Report), American Woodmark Corporation (AMWD Quick Quote AMWD - Free Report), La-Z-Boy Incorporated (LZB Quick Quote LZB - Free Report), and Sleep Number Corporation (SNBR Quick Quote SNBR - Free Report).

Industry Description

The Zacks Furniture industry comprises manufacturers, designers, and marketers of residential and commercial furnishings solutions. Some of the companies provide kitchen and bath cabinets as well as various engineered components and products in the United States and international markets. A few industry players also offer specialty rental services, such as modular and portable storage solutions.

The industry players cater to different sectors, namely, construction, energy, healthcare, security, government, retail, commercial, education, and transportation.

3 Trends Shaping the Future of the Furniture Industry

Solid Residential & Repair & Remodeling Market: Improved housing market fundamentals in the United States make the near-term outlook for the furniture industry encouraging. The continuous declines in mortgage rates have been driving new home sales, which in turn, should drive demand for furniture products in the near term. Meanwhile, working from home or stay-at-home orders amid the COVID-19 pandemic have encouraged consumers to take on more home improvement projects. So, significant investments in the renovation are expected to brighten the market outlook.

Innovation, Digital Marketing & Acquisitions: Product innovation plays a key decisive factor for market share gain in this industry. Players are investing in new products to improve the product mix in a competitive landscape and drive top-line growth. Also, millennials represent the largest consumer cohort in the furniture market. More money in the hands of this largest and most-active generation of homebuyers should keep demand elevated. Also, customer experience is getting enhanced by innovative marketing techniques, with emphasis on digital marketing, better merchandising, store remodeling, and loyalty programs. Moreover, industry players like Leggett & Platt, Incorporated (LEG Quick Quote LEG - Free Report) and others are pursuing acquisitions to broaden their product portfolio and expand their geographic footprint as well as market share.

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