9 Best Home Improvement Stocks To Buy Now

1. The Sherwin-Williams Company (NYSE:SHW)

Number of Hedge Fund Shareholders In Q1 2024: 78

Topping our list of the best home improvement stocks is The Sherwin-Williams Company (NYSE:SHW). It sells paints, varnishes, adhesives, and other associated home improvement products. The firm’s latest earnings report saw it miss adjusted analyst EPS estimates of $2.21 by posting $2.17 in the segment. Its revenue of $5.37 billion also missed analyst estimates of $5.5 billion, as a demand slowdown had an impact on the income statement. In an April 2024 analyst note, Evercore ISI cut The Sherwin-Williams Company (NYSE:SHW)’s share price target to $350 from $380 but kept an Outperform rating on the shares. The research firm outlined that it expects the home improvement stock to moderately grow its earnings in 2024, but added that if The Sherwin-Williams Company (NYSE:SHW) 2024 EPS is greater than $13, the stock could cross $400. In May, Evercore increased the share price target to $365 from $360.

As of Q1 2024 end, 78 hedge funds part of Insider Monkey’s database were The Sherwin-Williams Company (NYSE:SHW)’s stakeholders. D. E.  Shaw’s D E Shaw owned the biggest stake which was worth $446 million.

The Sherwin-Williams Company (NYSE:SHW)’s forward price to earnings ratio of 27.10 makes it overvalued compared to the market’s 21. Its shares are up by 61.47% over the past four years, while revenue growth over the same period is roughly 26%, implying that the market is factoring in other headwinds apart from sales growth. We recently covered SHW in 25 Best Dividend Aristocrat Stocks To Buy. While we acknowledge the potential of home improvement companies, 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 an AI stock that is more promising than SHW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None.