S&P 500   4,140.06 (-0.12%)
DOW   32,840.66 (+0.11%)
QQQ   319.98 (-0.55%)
AAPL   165.14 (-0.13%)
MSFT   280.23 (-0.95%)
META   170.73 (+2.17%)
GOOGL   117.47 (+0.00%)
AMZN   138.93 (-1.33%)
TSLA   873.77 (+1.07%)
NVDA   175.35 (-7.66%)
NIO   20.24 (+0.10%)
BABA   90.58 (-2.14%)
AMD   99.90 (-2.36%)
MU   61.46 (-1.60%)
T   18.03 (-1.74%)
CGC   3.16 (+17.04%)
GE   75.34 (+1.32%)
F   15.85 (+3.59%)
DIS   109.01 (+2.23%)
AMC   23.65 (+6.63%)
PYPL   96.42 (+1.15%)
PFE   49.33 (+0.12%)
NFLX   233.60 (+3.01%)
S&P 500   4,140.06 (-0.12%)
DOW   32,840.66 (+0.11%)
QQQ   319.98 (-0.55%)
AAPL   165.14 (-0.13%)
MSFT   280.23 (-0.95%)
META   170.73 (+2.17%)
GOOGL   117.47 (+0.00%)
AMZN   138.93 (-1.33%)
TSLA   873.77 (+1.07%)
NVDA   175.35 (-7.66%)
NIO   20.24 (+0.10%)
BABA   90.58 (-2.14%)
AMD   99.90 (-2.36%)
MU   61.46 (-1.60%)
T   18.03 (-1.74%)
CGC   3.16 (+17.04%)
GE   75.34 (+1.32%)
F   15.85 (+3.59%)
DIS   109.01 (+2.23%)
AMC   23.65 (+6.63%)
PYPL   96.42 (+1.15%)
PFE   49.33 (+0.12%)
NFLX   233.60 (+3.01%)
S&P 500   4,140.06 (-0.12%)
DOW   32,840.66 (+0.11%)
QQQ   319.98 (-0.55%)
AAPL   165.14 (-0.13%)
MSFT   280.23 (-0.95%)
META   170.73 (+2.17%)
GOOGL   117.47 (+0.00%)
AMZN   138.93 (-1.33%)
TSLA   873.77 (+1.07%)
NVDA   175.35 (-7.66%)
NIO   20.24 (+0.10%)
BABA   90.58 (-2.14%)
AMD   99.90 (-2.36%)
MU   61.46 (-1.60%)
T   18.03 (-1.74%)
CGC   3.16 (+17.04%)
GE   75.34 (+1.32%)
F   15.85 (+3.59%)
DIS   109.01 (+2.23%)
AMC   23.65 (+6.63%)
PYPL   96.42 (+1.15%)
PFE   49.33 (+0.12%)
NFLX   233.60 (+3.01%)
S&P 500   4,140.06 (-0.12%)
DOW   32,840.66 (+0.11%)
QQQ   319.98 (-0.55%)
AAPL   165.14 (-0.13%)
MSFT   280.23 (-0.95%)
META   170.73 (+2.17%)
GOOGL   117.47 (+0.00%)
AMZN   138.93 (-1.33%)
TSLA   873.77 (+1.07%)
NVDA   175.35 (-7.66%)
NIO   20.24 (+0.10%)
BABA   90.58 (-2.14%)
AMD   99.90 (-2.36%)
MU   61.46 (-1.60%)
T   18.03 (-1.74%)
CGC   3.16 (+17.04%)
GE   75.34 (+1.32%)
F   15.85 (+3.59%)
DIS   109.01 (+2.23%)
AMC   23.65 (+6.63%)
PYPL   96.42 (+1.15%)
PFE   49.33 (+0.12%)
NFLX   233.60 (+3.01%)

3 Home Improvement Stocks That Can Renovate Your Portfolio

3 Home Improvement Stocks That Can Renovate Your Portfolio

During a bear market, home improvement stocks have historically been solid defensive plays 

The housing sector is slowing down. Rising mortgage rates are having the predictable effect of cooling down demand.  

Or are they? While homeowners may not be able to get the same premium they could command just one year ago, there is still an ample supply of homes on the market. And once these homes change hands, new homeowners will be ready to make their new house their own.  

However, that’s not the only catalyst for home improvement stocks. Homeowners who are deciding to “love it” rather than “list it” are likely to put some money into one of their largest investments as they wait for the housing pendulum to swing back in their favor.  

In this article, I’ll give you three home improvement companies that continue to generate strong revenue and earnings. And two of these companies are also members of the exclusive Dividend Aristocrat club. These are companies that have increased their dividend for at least 25 consecutive years.  

If that’s the kind of balance of growth and income that appeals to you, it may be time for you to consider these three home improvement stocks. 

Lowe’s (LOW) 

Lowe’s (NYSE: LOW) stock is down about 30% in 2022. That’s larger than the broader market. But in the last month, the stock is showing signs of forming a bottom. And with the stock near its 52-week low, it may be time for investors to take a closer look at the stock.  


The driving force for that sentiment may be the company’s earnings. In May, Lowe’s closed out its fiscal year. Revenue growth came in at an uninspiring 1% growth. But earnings were up 19%. Even if companies are heading into an earnings recession, a P/E ratio that is slightly below the sector average means it’s likely that Lowe’s will be able to post growth, albeit perhaps slower growth, in its next fiscal year. 

And Lowe’s offers investors a rock-solid dividend that it has increased in each of the last 48 years. The current payout is $3.20 per share on an annual basis, and the company has averaged 17% dividend growth over the past three years.  

Home Depot (HD) 

Just as investors can debate Coca-Cola (NYSE: KO) versus Pepsi (NASDAQ: PEP) among consumer discretionary stocks, they can frequently plant their flag with Lowe’s or Home Depot (NYSE: HD) when it comes to home improvement stocks.  

To be fair, neither of these stocks looks like a bad selection for investors who are concerned about a recession. Home Depot delivered a strong earnings report in May 2022. Revenue was up 3.8% and earnings per share were up 5.8%. The company delivered strong same-store sales growth that was due in large part to its relationship with professional contractors. 

Of the three stocks in this article, Home Depot has the largest dividend yield (2.68%) as well as the largest payout ($7.60). And while it’s not a dividend aristocrat the company has increased its dividend in each of the last 14 years.  

Sherwin Williams (SHW) 

Paint is one of the most cost-effective ways to give a house a refreshing update. And as we move into the fall, homeowners attention turns to finding that perfect swatch of paint to transform a room. That’s enough to put Sherwin-Williams (NYSE: SHW) on my radar and perhaps yours as well. Historically the current quarter and the following quarter are the company’s strongest in terms of revenue.  

But the skeptics will point to the fact that earnings have been a mixed bag. The company has missed analysts’ expectations in two of last four quarters and in the other two the gains were on the tepid side. And I’ll concede that a mixed earnings outlook will probably bring current price targets down from their 30% upside.  

That being said, SHW stock offers both growth and income which is appealing in this volatile market. Sherwin Williams dividend yield of 1% isn’t likely to make income investors swoon. But the company does payout $2.40 on an annualized basis. The company also sports a three-year dividend growth of 24.26% and has increased its dividend in each of the last 44 years.  

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Lowe's Companies (LOW)
2.7598 of 5 stars
$201.56+1.2%2.08%16.43Moderate Buy$238.58
Home Depot (HD)
3.0843 of 5 stars
$311.12+0.5%2.44%19.75Moderate Buy$368.45
Sherwin-Williams (SHW)
3.0039 of 5 stars
$239.78+1.1%1.00%36.06Hold$314.79
Coca-Cola (KO)
2.3393 of 5 stars
$62.96-0.7%2.80%28.49Moderate Buy$69.35
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Lowe's Companies right now?

Before you consider Lowe's Companies, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lowe's Companies wasn't on the list.

While Lowe's Companies currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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