Positions I’m Watching: Home Improvement Stores

By: Stacey Nickens

With people stuck at home, more consumers are spending money on home improvement projects than ever before. Last week, Home Depot reported the highest quarterly growth in sales in almost 20 years. These numbers suggest that consumers are spending money on their homes that would normally go towards vacations, eating out, and other activities made more challenging by COVID-19. Additionally, this growth is more due to individual consumers rather than professional contractors. Lowe’s saw even more growth, given that it relies more on do-it-yourself consumers than does Home Depot. All this said, consider investing in companies who provide materials for these home improvement projects.

Considering other investments? Look at why I recommend RV Manufacturers, Biotechnology ETFs, and Cell Phone Tower REITs.

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.