We have compiled a list of the 9 Best Home Improvement Stocks to Buy Now based on the latest sentiment data from hedge funds. In this article, we will focus on Tractor Supply Company (NASDAQ:TSCO) and how it compares to other home improvement stocks.
Home improvement stocks are companies involved in the home improvement and construction industries, selling products to homeowners, builders, and construction professionals. Their performance is tied to the housing industry and the economy, with economic growth and high spending driving their success.
The real estate industry’s performance is closely linked to interest rates, affecting builders and buyers’ ability to fund projects and purchases. In 2024, home building and home improvement stocks fluctuated as the market adjusted interest rate cut expectations. Pure play home building stocks saw gains of up to 52% over the past year due to a housing shortage and tight market. However, recent inflation concerns led to a slight decline in these stocks.
Similarly, home improvement stocks, like building materials and fixtures, saw gains of around 49% over the past year. Demand for houses and buildings drives sales of products like flooring and plumbing. Despite initial gains, these stocks also experienced a slight decline in 2024.
Interest rates play a significant role in home improvement stocks’ performance. The current inflationary and macroeconomic environment is crucial in analyzing these stocks’ potential. Recent data on inflation showed a slight increase, leading to speculation about a potential interest rate cut.
Tractor Supply Company (NASDAQ:TSCO) is a specialty tools and hardware company serving farmers. In Q1 2024, 32 out of 933 hedge funds were shareholders of TSCO. The company’s strong performance led to a 210% increase in its shares over the past four years. However, analysts predict a slowdown in growth for 2024.
While some hedge funds are bullish on TSCO, we believe more sustained growth is needed before considering it a strong investment. TSCO ranks 5th among the 9 best home improvement stocks to buy now, according to hedge funds. For those seeking promising AI stocks, we recommend exploring alternatives with higher potential returns.
Overall, TSCO’s performance reflects the broader trends in the home improvement industry. Investors should carefully consider market conditions and company performance before making investment decisions.