In this article, we will be looking at the 5 best home appliance stocks to buy. If you want to see our detailed analysis of these stocks, you can go directly to the 10 Best Home Appliance Stocks to Buy.
5. Best Buy Co., Inc. (NYSE: BBY)
Number of Hedge Fund Holders: 33
Best Buy Co., Inc. (NYSE: BBY) is a retailer of technology products in the US and Canada, but the company’s stores also provide consumers with appliances like dishwashers, ovens, refrigerators, and other related products. It ranks 5th on our list of the best home appliance stocks to buy.
This June, Loop Capital kept its Buy rating on Best Buy Co., Inc. (NYSE: BBY) alongside its $150 price target on the shares. Analyst Anthony Chukumba commented that the company’s prices are competitive when compared to those of Amazon’s, and Best Buy Co., Inc. (NYSE: BBY) may also be set to benefit from companies returning to work in offices.
In the fiscal first quarter of 2022, Best Buy Co., Inc. (NYSE: BBY) had an EPS of $2.23, beating estimates by $0.81. The company’s revenue was $11.64 billion, up 35.91% year over year, beating estimates by $1.21 billion. Best Buy Co., Inc. (NYSE: BBY) has a gross profit margin of 22.55% and it has gained 29.49% in the past year.
By the end of the first quarter of 2021, 33 hedge funds out of the 866 tracked by Insider Monkey held stakes in Best Buy Co., Inc. (NYSE: BBY). The total value of their stakes was roughly $957 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $975 million.
4. Walmart Inc. (NYSE: WMT)
Number of Hedge Fund Holders: 58
Walmart Inc. (NYSE: WMT) is a retail and wholesale company that operates a range of stores in the US. Its stores also offer a wide variety of household appliances to consumers, among other products, and it ranks 4th on our list of the best home appliance stocks to buy.
Morgan Stanley analyst Simeon Gutman has commented on Walmart Inc. (NYSE: WMT) this July, stating that the stock looks “interesting” and has thus maintained his Overweight rating on Walmart Inc. (NYSE: WMT) shares alongside the firm’s $160 price target.
In the fiscal first quarter of 2022, Walmart Inc. (NYSE: WMT) had an EPS of $1.69, beating estimates by $0.48. The company’s revenue was $137.16 billion, up 2.61% year over year and beating estimates by $5.04 billion as well. Walmart Inc. (NYSE: WMT) has a gross profit margin of 25.10% and it has gained 8.32% in the past year.
By the end of the first quarter of 2021, 58 hedge funds out of the 866 tracked by Insider Monkey held stakes in Walmart Inc. (NYSE: WMT). The total value of their stakes was roughly $5.88 billion. This is compared to 70 hedge funds in the previous quarter with a total stake value of approximately $6.19 billion.
3. Lowe’s Companies, Inc. (NYSE: LOW)
Number of Hedge Fund Holders: 61
Lowe’s Companies, Inc. (NYSE: LOW) is a home improvement retailer operating in the US and internationally. The company also offers home appliances like microwaves, dishwashers, and related products at its stores and ranks 3rd on our list of the best home appliance stocks to buy.
This May, Truist raised its price target on Lowe’s Companies, Inc. (NYSE: LOW) from $185 to $217, while retaining its Buy rating on the shares. Analyst Keith Hughes commented that the upgrade came in light of robust Q1 earnings and 2021 guidance that seems positive for the company.
In the fiscal first quarter of 2022, Lowe’s Companies, Inc. (NYSE: LOW) had an EPS of $3.21, beating estimates by $0.62. The company’s revenue was $24.42 billion, up 24.13% year over year, beating estimates by $667.62 million. Lowe’s Companies, Inc. (NYSE: LOW) has a gross profit margin of 33.07% and the stock has gained 15.56% in the past 6 months and 21.77% year to date.
By the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in Lowe’s Companies, Inc. (NYSE: LOW). The total value of their stakes was roughly $5.17 billion. This is compared to 71 hedge funds in the previous quarter with a total stake value of approximately $5.19 billion.
Pershing Square Holdings Ltd, an investment management firm, mentioned Lowe’s Companies, Inc. (NYSE: LOW) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Lowe’s is a high-quality business with significant long-term earnings growth potential. We initiated our investment in the company in April 2018 largely because we believed that the hiring of a new high-caliber management team could dramatically improve the business and close the performance gap to its closest competitor, Home Depot. Marvin Ellison became CEO in July 2018, and immediately began working on a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities.
In 2020, Lowe’s experienced unprecedented demand driven by consumers nesting at home, higher home asset utilization and a reallocation of discretionary spend. Lowe’s earlier decision to modernize the company’s online offering allowed it to meet consumers’ surging demand. Further, its commitment to improve the company’s retail fundamentals allowed Lowe’s to showcase its enhanced merchandising, greater in-stock-levels, and excellent customer service. In the fourth quarter, the company completed 95% of its store layout resets which include a more intuitive shopping experience complete with a more Pro-centric layout (by “Pro” we refer to the professional tradesmen that perform repair and maintenance, remodeling and construction services). The company is also rolling out a new Pro CRM tool, which should improve Lowe’s Pro market share.
Management remains focused on a myriad of operational initiatives designed to improve the customer shopping experience and the company’s long-term earnings power. In the near-to-medium-term, these initiatives include improving Lowe’s omnichannel capabilities including simplifying search and checkout features, launching three additional ecommerce fulfillment centers, enabling faster mobile order fulfillment, standing up dedicated store fulfillment teams, rolling out touchless Buy-Online-Pick-Up-In-Store lockers to all U.S. stores by April 2021, and reimagining scheduling and modes of delivery for certain large-format order deliveries (notably, appliances). These initiatives are examples of Lowe’s “Perpetual Productivity Improvement” program which is designed to improve market share and profit margins.
Lowe’s is making important strategic investments to position the business to continue to thrive. The company’s long-term outlook implies significant opportunity for continued earnings appreciation and margin expansion as it executes its multiyear business transformation.”
2. Conn’s Inc (NASDAQ: CONN)
Number of Hedge Fund Holders: 12
Conn’s Inc (NASDAQ: CONN) is a Texas-based furniture and appliance store chain. The stock jumped in June after the company posted a whopping 70% increase in retail sales. Home appliance sales jumped 40% to reach $113.26 million, while consumer electronics sales increased by 6.3% in the period.
At the end of the first quarter, 12 hedge funds tracked by Insider Monkey held stakes in the company, up from 11 funds a quarter earlier.
1. The Home Depot, Inc. (NYSE: HD)
Number of Hedge Fund Holders: 68
The Home Depot, Inc. (NYSE: HD) is a home improvement retailer operating a wide variety of The Home Depot, Inc. (NYSE: HD) stores where consumers can buy a range of curated kitchen appliances for their houses. The stock ranks 1st on our list of the best home appliance stocks to buy.
This May, Credit Suisse raised its price target on The Home Depot, Inc. (NYSE: HD) from $319 to $330 with analyst Lavesh Hemnani commenting that the upgrade came about in light of strong results announced by the company for the first quarter. The firm has retained its Outperform rating on the shares as well.
In the fiscal first quarter of 2022, The Home Depot, Inc. (NYSE: HD) had an EPS of $3.86, beating estimates by $0.81. The company’s revenue was $37.50 billion, up 32.70% year over year, beating estimates by $2.87 billion. The Home Depot, Inc. (NYSE: HD) has a gross profit margin of 33.94% and has gained 17.12% in the past 6 months and 22.63% year to date.
By the end of the first quarter of 2021, 68 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE: HD). The total value of their stakes was roughly $4.35 billion. This is compared to 79 hedge funds in the previous quarter with a total stake value of approximately $4.92 billion.
You can also take a peek at 10 Construction Stocks Under $10 and 10 Best Construction Materials Stocks To Buy Now.
