7 Best Furniture Stocks To Invest In According to Analysts

1. Arhaus, Inc (NASDAQ:ARHS)

Number of Hedge Fund Holders: 17

Analysts Upside Potential: 58.37%

Arhaus, Inc (NASDAQ:ARHS) ranks as the best furniture company to invest in according to analysts. The stock was held by 17 hedge funds in Q2 2024, as per Insider Monkey’s database. Moreover, analysts’ 12-month median price target is pointing towards a 58.37% upside from the current levels.

The company specializes in selling high-quality home furnishings through a network of 100 showrooms and studio design center locations across the United States. The company is renowned as a lifestyle brand focused on creating a specific style and experience for customers in their homes.

Arhaus, Inc (NASDAQ:ARHS) reported significant growth during the second quarter of fiscal 2024. John Reed, Co-Founder and Chief Executive Officer, mentioned that they opened eight new showrooms across six states and have reached a total of 100 showrooms. Management aims to open around 9 to 11 more showrooms by the end of 2024 and is aiming for a long-term goal of 165 traditional showrooms and 100 design studios.

Total demand during the second quarter softened to mid single digits resulting in net revenue going down from $313 million in the second quarter of fiscal 2023 to $310 million during the current year. Management attributed the slowdown to the non-recurrence of last year’s abnormal backlog deliveries and the implementation of warehouse management systems in the Ohio distribution center.

What’s more impressive about Arhaus, Inc. (NASDAQ:ARHS) is its strong cash position with $223.1 million in cash and cash equivalents, and on top of that, the company holds no long-term debt. Looking ahead management is expecting net revenues for the full fiscal year 2024 to be between $1.25 billion and $1.29 billion.

While we acknowledge the potential of Arhaus, Inc (NASDAQ:ARHS) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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