10 Best Furniture Stocks to Buy Right Now

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1. Williams-Sonoma, Inc. (NYSE:WSM)

Number of Hedge Fund Holders: 35

Williams-Sonoma, Inc. (NYSE:WSM) is a retailer of home products. It operates through popular segments, including Pottery Barn, Williams Sonoma, Pottery Barn Kids, West Elm, and more. It also operates an Other segment that covers the operations of its international franchise segments, Rejuvenation and Mark and Graham.

Although the company’s revenue in fiscal Q3 2024 was down due to the broader market’s headwinds, Williams-Sonoma, Inc. (NYSE:WSM) managed to grow its earnings per share by 7.1% in the quarter, taking it to $1.96 and exceeding analyst expectations. This growth was attributed to the company’s higher gross margins, which increased to 46.7% from 44.4% last year. The company also repurchased $533 million worth of stock in fiscal Q3 2024, bringing its share count and expanding its year-to-date repurchase total to $707 million.

The company also demonstrated strong cash generation. In Q3 2024, it reported an operating cash flow of $254 million and returned $73 million to shareholders via dividends. In addition, it has been growing its payouts for 15 consecutive years. Williams-Sonoma, Inc.’s (NYSE:WSM) operating results reflect its operational improvements and the strength of its margin profile, making it one of the best furniture stocks to buy right now.

Overall, WSM ranks first among the 10 best furniture stocks to buy right now. While we acknowledge the potential of furniture stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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