Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Is The Lovesac Company (LOVE) The Best Furniture Stock To Invest In According To Analysts?

We recently published a list of 7 Best Furniture Stocks To Invest In According to Analysts. In this article, we are going to take a look at where The Lovesac Company (NASDAQ:LOVE) stands against other best furniture stocks to invest in according to analysts.

The furniture industry has faced some serious headwinds over the past years. Last time the industry was thriving at substantial growth rates was in 2021, when a surge in consumer spending after the pandemic uplifted the industry. According to a report by Home Furnishing Business, the furniture and bedding industry sales grew by around 21.9% during 2021. However, the growth trend couldn’t sustain for long due to the rise in inflation, which resulted in the growth falling to only 5.2% in 2022 and negative 0.4% in 2023.

Fastforwarding to 2024, it seems that the furniture industry is yet to rebound from its post pandemic lows. Most of the major players in the furniture retail industry of the United States posted declining sales and falling share values during the first quarter of fiscal 2024. According to a report by Forbes, the sales of furniture and home furnishings were down by 6.8% year-over-year in May 2024 indicating one of the biggest drops according to the monthly data. The industry has faced a tough economic environment due to high interest rates and inflation affecting consumers purchasing power. Moreover, the increase in mortgage rates have also added to the challenge as fewer home purchases mean less furnishing needs. Historic data shows that the 30 year mortgage rate graph and the S&P 500 Furnishings index have always shown an inverse relationship meaning a drop in mortgage rates has helped increase sales for the industry.

Looking ahead, analysts believe there is some bright spot for the industry to rebound out of its lows. The Consumer Price Index by the Bureau of Labor Statistics shows that prices fell by 3.7% in May 2024, moreover, the cost of overall household furnishing also dropped by 2.5% during the same month. The drop in prices is expected to attract customers as they gain back their purchasing power. In addition the recent Fed cut is also expected to ease the economy allowing more consumers to spend on home furnishing, thereby helping the industry to bounce back.

An Overview Of The International Furniture Market

According to a report by Global Market Insights, the international furniture market was valued at $641.7 billion in 2023. The market is forecasted to grow at a compound annual growth rate of 5.1% from 2024 to 2032. The growth in the market is fueled by rising disposable income, innovation in the furniture industry, and the growth in the hospitality and housing sectors. As per the report, the current trends in the industry include a growing consciousness of buying furniture made from sustainable material that causes a smaller environmental effect. Moreover, consumers are also preferring smart furniture that offers adjustability and customization options.

As far as the regional insights are concerned the Asia Pacific region remains the largest market with a share of $321.5 billion as of 2023. Moreover, China is one of the largest producers of furniture accounting for approximately $7.13 billion market share.

The furniture industry falls in the consumer cyclical sectors of the stock market and most of the furniture companies are either small or medium-cap companies.

READ ALSO: 10 Best Falling Stocks To Buy According to Hedge Funds and 8 Best Small-Cap Growth Stocks to Buy According to Analysts.

How Are Cyclicals Expected to Perform?

Mike Wilson, CIO and Chief U.S. Equity Strategist of Morgan Stanley released a note on October 22nd through the company’s podcast called Thoughts On The Market. He discussed his analysis regarding the quality of cyclicals and how they would be affected by the US elections and global liquidity. He mentioned that he continues to believe in cyclical shifts and financial upgrades. The cyclicals traded well last week because most economic data was stronger than expected. Wilson noted that investors must stay up the quality curve within the cyclical sector.

He mentioned that financials has been the best-performing sector in the S&P 500, however, institutional investors remain underexposed to the industry as per the bank’s data. Wilson noted that there are other factors other than better economic data that support the high-quality cyclical stocks. The main factors that he is closely watching are the US elections and global liquidity. Wilson mentioned that the outcome of the upcoming election could significantly impact market performance. A victory for Donald Trump, especially with a divided Congress, is believed to favor small-cap companies alongside larger ones. This scenario could lead to a stronger performance for cyclical stocks like those in finance. Moreover, he also mentioned that there has been a substantial increase in the amount of money available globally, which can boost asset prices across various sectors.

While discussing more about the hypothetical scenario of a Trump win, Wilson mentioned that the market seems to reflect optimism about cyclical stocks, particularly financials, which have outperformed recently. He mentioned that other people argue that a Trump win would be a headwind for growth and equity markets, due to tariff risks and slowing immigration.

Wilson thinks there are other factors to consider. To elaborate, he drew a historical comparison with the 2016 election and noted that Trump’s election led to increased confidence among small businesses and individual investors, which positively impacted the markets. There is speculation that similar sentiments might arise if he wins again.

Simultaneously, Wilson also discussed the other potential outcome of Kamala Harris winning the election. In this scenario, he believes the market might revert to favoring defensive investments including bonds and stable growth stocks.

He elaborated that it is critical to note that the economic conditions today are very different from the 2016 period when the economy had a greater amount of idle resources, thereby holding the capacity to absorb additional pro-cyclical policies, including tax rate cuts or other stimulus.

Moreover, in terms of global liquidity, Wilson noted that the global money supply in US dollars has surged at an 18 % annualized rate since the end of June 2024. He thinks this indicates a positive effect on equity prices, the credit spread, precious metals, real estate, and cryptocurrencies.

Lastly, Wilson believes that stock markets are expected to perform well and rise in value across both general indexes and specific types of investments.

Our Methodology

To compile the list of 7 best furniture stocks to invest in according to analysts we used the Finviz stock screener and our previous articles. Using these two sources we aggregated a list of furniture stocks that were most widely held by hedge funds during Q2 2024, as per Insider Monkey’s database and for whom analysts’ 12-month median price targets were presenting an upside of at least 15% from the current levels. Next, we ranked the stocks based on the analysts upside potential. Please note that the list is ranked in ascending order of the the upside potential and that the data was recorded on October 23, 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A mid-sized warehouse filled with furniture and home appliances.

6. The Lovesac Company (NASDAQ:LOVE)

Number of Hedge Fund Holders: 14

Analysts Upside Potential: 23.28%

The Lovesac Company (NASDAQ:LOVE) is a modern technology-driven furniture company specializing in creating unique furniture products. They focus on technology and innovation in their products. For example, their Sactionals, which are modular couches include patented features that enhance their modularity and functionality. The company sells its products through its website and showrooms where customers can physically experience its products. They utilize pop-up shops and also enter into partnerships with other retailers to expand their reach.

On September 17th, The Lovesac Company (NASDAQ:LOVE) introduced AnyTable, which is a fully customizable table solution that can integrate with its couches to be used as an in-line table, an end table, or as a coffee table.

During the second quarter of fiscal 2025, the company reported strong financial results despite challenges in the home furnishings market. The net sales for the quarter were $156.6 a 1.3% increase year-over-year. However, the gross profits remained stagnant when compared to the same quarter the previous year. During the quarter, the company opened 10 new showrooms and closed 2 showrooms. The Lovesac Company (NASDAQ:LOVE) also faced some challenges with a 5.4% decrease in its omni-channel comparable net sales.

Looking ahead, management remains confident about future growth despite industry challenges, with plans for additional product launches and collaborations to enhance brand visibility and customer loyalty. It is one of the best furniture stocks to invest in according to analysts.

Overall, The Lovesac Company (NASDAQ:LOVE) ranks 6th on our list of best furniture stocks to invest in according to analysts. While we acknowledge the potential of LOVE 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.

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

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…