7 Best Furniture Stocks To Invest In According to Analysts

5. MasterBrand, Inc. (NYSE:MBC)

Number of Hedge Fund Holders: 27

Analysts Upside Potential: 24.06%

MasterBrand, Inc. (NYSE:MBC) is one of the leading North American furniture companies that focuses on manufacturing residential cabinets. The product portfolio of the company includes specialized cabinets for kitchens, bathrooms, and other home areas.

The company sells its products through various channels, including dealers, retailers, and builders ensuring they reach customers in both remodeling and new construction markets across the United States and Canada. MasterBrand, Inc. (NYSE:MBC) has an industry-leading network of more than 6000 dealers and around 20 manufacturing facilities.

The company reported significant development in its second-quarter results for fiscal 2024. It achieved net sales of $677 million, which reflects a 3% decline compared to the same period last year. The decline was already anticipated by the management due to lower average selling prices (ASP) and normal promotional activities. Moreover, the company also reported an adjusted EBITDA of $105 million, with a margin of 15.5%, indicating a slight improvement from the previous year.

Management of MasterBrand, Inc. (NYSE:MBC) is focused on optimizing market segments, targeting the right customers with appropriate products, and enhancing service levels. They also announced the successful acquisition of Supreme Cabinetry Brands for $520 million. This marks a significant milestone as it is their first acquisition since becoming a stand-alone public company. The acquisition will enhance its portfolio with premium kitchen and bath products, and also add more reach for the company with the established dealer network of Supreme Cabinetry Brands.

MasterBrand, Inc. (NYSE:MBC) is the 5th best furniture stock to invest in according to analysts. It was held by 27 hedge funds in Q2 2024, as per Insider Monkey’s database, moreover, analysts 12-month median price target is pointing towards a 24% upside from current levels.

Oakmark Funds made the following comment about MasterBrand, Inc. (NYSE:MBC) in its Q4 2022 investor letter:

“In addition to these new investments, we received shares in MasterBrand, Inc. (NYSE:MBC) upon its spin-off in December from Fortune Brands Home & Security. Following the spin-off, Fortune Brands was renamed Fortune Brands Innovation (FBIN), and MasterBrand became a separate publicly traded company. MasterBrand is a leading cabinet manufacturer that maintains the largest scale, the most diverse channel mix, and the broadest product portfolio in the industry. We believe that both Fortune Brands Innovation and MasterBrand are undervalued stocks, and we remain investors in each of them.”