10 Best Furniture Stocks to Buy Now

Published August 11, 2021 at 10:06 am EDT Updated August 19, 2026 at 5:15 am EDT

In this article, we discuss the 10 most popular stocks to buy right now.

During the lockdown, the home furniture industry capitalized from the spike in consumer demand for furnishings as idled stay-at-home buyers sought to re-furnish their houses. Consumer spending patterns shifted as offices encouraged employees to work from home. According to Deloitte’s data, the personal consumption expenditure in durable goods, including furnishings, durable household equipment, home gym machine, and home office equipment, in the US has increased 6.3% in 2020, up from 4.8% in the previous year.

In 2020, the home improvement and repair spending grew by approximately 3% to $420 billion, according to a study by the Joint Center For Housing Studies of Harvard University. Some of the biggest names in the furniture industry that benefited during the pandemic are Bassett Furniture Industries, Incorporated (NASDAQ: BSET), Herman Miller, Inc. (NASDAQ: MLHR), Leggett & Platt, Incorporated (NYSE: LEG), and HNI Corporation (NYSE: HNI), as recent earnings show.

Even though the furniture and home improvement sectors made money last year, Credit Suisse analyst Seth Sigman is bullish on the industry for at least the next year. Based on a McKinsey & Company survey, even in the post-pandemic period, 30% of consumers intend to spend money on home-related items. The continuous surge in demand was evidenced in the recent earnings figure of The Home Depot, Inc. (NYSE: HD) and Wayfair Inc. (NYSE: W).

In the first quarter of 2021, The Home Depot, Inc.’s (NYSE: HD) revenue came in at $37.5 billion, an increase of 32.7% year over year and beating revenue estimates of $34.96 billion. The home improvement behemoth recorded a 19.3% growth in consumer transactions to 447.2 million. For the quarter, same-store sales increased by 31% globally, while e-commerce revenue increased by 27%. The stock has gained 31% year to date, and shares increased 19% in the last twelve months.

Another furniture stock market analysts are bullish on is Boston-based online furniture retailer Wayfair Inc.. Jefferies analyst Jonathan Matuszewski maintained a buy rating on Wayfair Inc. with a price target of $330 per share, following the company’s solid Q2 report. The company’s second-quarter revenue came in at $3.9 billion. On August 5, Wayfair Inc. stock jumped 6.60% in premarket trading after the company reported a higher profit than expected.

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Our Methodology

The stocks on our list were picked based on their fundamentals and prospects for growth based on key business characteristics. We also took into account analyst ratings and future potential.

We ranked these furniture stocks based on the number of hedge funds having stakes in them, based on our data of over 866 hedge funds.

Why pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29, 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s look at the 10 best furniture stocks to buy now.

Best Furniture Stocks to Buy Now

10. Bassett Furniture Industries, Incorporated (NASDAQ: BSET)

Number of Hedge Fund Holders: 9

We start our list of the 10 best furniture stocks to buy now with Bassett Furniture Industries, Incorporated. The Virginia-based furniture company, which was founded in 1902, has evolved to become one of the most prominent furniture manufacturers in the US and Puerto Rico. As of July 2021, Bassett Furniture Industries, Incorporated operated a network of 97 company- and licensee-owned stores.

On July 15, Bassett Furniture Industries, Incorporated raised its quarterly dividend by 12%, announcing a $0.14 per share dividend payable on August 27, 2021. Shares of Bassett Furniture Industries, Incorporated jumped 13%, year to date.

In April, the furniture manufacturer announced that it would expand its operations in North Carolina, leasing a 123,000-square-foot production facility that would launch operations in June 2021 and ramp-up in Q3. On April 27, Noble Capital analyst Joe Gomes maintained an Outperform rating on Bassett Furniture Industries, Incorporated and increased the firm’s price target to $32 per share from the previous $28. The stock has gained 141% in the last twelve months.

The company has a market cap of $221.64 million. In the second quarter of 2021, Bassett Furniture Industries, Incorporated reported an EPS of $0.60, beating estimates by $0.25. The company’s second-quarter revenue grew 94% year over year to $124.1 million, beating revenue estimates by $7.9 million.

At the end of the first quarter of 2021, 9 hedge funds from our database held stakes in Bassett Furniture Industries, Incorporated. The total value of these positions amounted to approximately $42.7 million, down from 11 hedge funds worth $40.3 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc., and Leggett & Platt, Incorporated, Bassett Furniture Industries, Incorporated is one of the best furniture stocks to buy now according to market analysts.

9. HNI Corporation (NYSE: HNI)

Number of Hedge Fund Holders: 12

HNI Corporation is an Iowa-based office furnishings manufacturer that ranks 9th on our list of the 10 best furniture stocks to buy now. The company distributes furniture products in the US, Canada, China, Singapore, Hong Kong, Taiwan, and Dubai.

In May, HNI Corporation increased its quarterly dividend by 1.6%, announcing a $0.31 per share dividend. The stock currently offers a dividend yield of 3.21%. Shares of HNI Corporation climbed 11.5%, year to date.

On March 8, Sidoti & Co. analysts upgraded HNI Corporation to a Buy from a neutral rating, with a price target of $48 per share.

The company has a market cap of $1.59 billion. In the second quarter of 2021, HNI Corporation reported an EPS of $0.40, beating estimates by $0.18. The company’s second-quarter revenue grew 22.3% year over year to $510.5 million, beating revenue estimates by $17.02 million. On July 29, the HNI Corporation announced its consensus revenue of $567.2 million in the third quarter of 2021. The stock has gained 4% in the last five days.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in HNI Corporation worth $44.2 million, up from 10 hedge funds worth $30.7 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc., and Leggett & Platt, Incorporated, HNI Corporation is one of the best furniture stocks to buy now according to market analysts.

8. American Woodmark Corporation (NASDAQ: AMWD)

Number of Hedge Fund Holders: 14

American Woodmark Corporation (NASDAQ: AMWD) is a Virginia-based cabinet maker and it ranks 8th on the list of 10 best furniture stocks to buy now. American Woodmark Corporation has 17 manufacturing sites and 18 service centers, that can produce over 41,000 cabinets per day and more than 10 million cabinets annually.

On July 22, Loop Capital analyst Garik Shmois upgraded American Woodmark Corporation to a Buy rating from Hold and increased the firm’s price target to $100 per share from the previous $94. The analyst emphasized that the company’s revenue growth persisted heading into the second quarter, while dealer traffic levels remained high.

The company has a market cap of $1.21 billion. In the fourth quarter of 2021, American Woodmark Corporation reported an EPS of $1.28, missing estimates by -$0.43. However, the company’s revenue increased 21.4% over the last four quarters to $473.4 million and beating revenue estimates by $9.6 million.

By the end of the first quarter of 2021, 14 hedge funds followed by Insider Monkey held stakes in American Woodmark Corporation with a total value of $51.3 million, up from 11 hedge funds worth $45.2 million, respectively, a quarter earlier.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc., and Leggett & Platt, Incorporated, American Woodmark Corporation is one of the best furniture stocks to buy now according to market analysts.

7. Kimball International, Inc. (NASDAQ: KBAL)

Number of Hedge Fund Holders: 16

Kimball International, Inc. (NASDAQ: KBAL) is an Indiana-based furniture company and it ranks 7th on the list of 10 best furniture stocks to buy now. The company was founded in 1939 and was formerly called The Jasper Corporation.

Kimball International, Inc. closed its $180 million acquisition of Poppin Inc., a commercial furniture design firm based in New York, in December 2020. Shares of Kimball International, Inc. rose 4% in the last year.

On May 11, Berenberg analyst Rudy Yang initiated Kimball International, Inc. with a Buy rating and a $17 price target, citing the company’s recent huge market share in healthcare facilities, work-from-home settings, and acquisitions as revenue drivers.

The company has a market cap of $454.6 million. In the fourth quarter of 2021, Kimball International, Inc. reported an EPS of $0.6, beating estimates by $0.5. The company’s fourth-quarter revenue came in at $146.2 million, beating revenue estimates by $6.9 million. The stock has gained 3% year to date.

By the end of the first quarter of 2021, 16 hedge funds followed by Insider Monkey held stakes in Kimball International, Inc. with a total value of $47.8 million.

Just like The Home Depot, Inc. (NYSE: HD), Wayfair Inc. (NYSE: W), Herman Miller, Inc., and Leggett & Platt, Incorporated, Kimball International, Inc. is one of the best furniture stocks to buy now according to market analysts.

6. Herman Miller, Inc. (NASDAQ: MLHR)

Number of Hedge Fund Holders: 18

Herman Miller, Inc. is a Michigan-based interior furnishings producer and it ranks 6th on the list of 10 best furniture stocks to buy now. Herman Miller, Inc. sells everything from office chairs to workstations, gaming set-ups, and clinical supply carts and systems.

In April 2021, Herman Miller, Inc. announced its $1.8 billion acquisition of Knoll, a modern furniture firm based in New York, which is scheduled to close in Q3 2021. Shares of Herman Miller, Inc. jumped 10% in the last six months.

On June 30, Benchmark analyst Reuben Garner maintained a Buy rating on Herman Miller, Inc. and increased the firm’s price target to $61 per share from the previous $50, noting a solid close to the company’s FY21.

The company has a market cap of $2.51 billion. In the fourth quarter of 2021, Herman Miller, Inc. reported an EPS of $0.56, beating the consensus of $0.39. The company’s revenue in the fourth quarter came in at $621.5 million, increasing 30% year over year and beating revenue estimates by $38.46 million. The company’s revenue from home office and workplace-related products grew 213% year over year. The stock has gained 61% in the past twelve months.

By the end of the first quarter of 2021, 18 hedge funds followed by Insider Monkey held stakes in Herman Miller, Inc. with a total value of $91.3 million.

In its Q1 2021 investor letter, ClearBridge Investments mentioned Herman Miller, Inc. and shared their insights on the company. Here is what the fund said:

“Our exposure to small-cap industrials names was also beneficial. Herman Miller, a manufacturer of sustainable design and ergonomic furniture for home, office — and this year especially, home office use — enjoyed significant retail sales growth in the quarter as well as good results from international sales.”

5. Sleep Number Corporation (NASDAQ: SNBR)

Number of Hedge Fund Holders: 21

Minneapolis-based Sleep Number Corporation (NASDAQ: SNBR) sells beds and bed accessories and it ranks 5th on the list of 10 best furniture stocks to buy now. Sleep Number Corporation had 602 retail outlets in the United States as of January 2021, and the company aims to have 650 stores by the end of the year.

On July 21, Piper Sandler analyst Peter Keith maintained an Overweight rating and a $135 price target on Sleep Number Corporation, stating that demand trends for the company’s products remained strong in Q2.

The company has a market cap of $2.35 billion. In the second quarter of 2021, Sleep Number Corporation recorded an EPS of $0.88, missing estimates by $0.22. The company’s second-quarter revenue was $484.3 million, an increase from $284.9 million in the same period of 2020. The stock has gained 108% in the past twelve months.

By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sleep Number Corporation, worth roughly $256 million, up from 16 hedge funds worth $159 million, respectively, a quarter earlier

4. La-Z-Boy Incorporated (NYSE: LZB)

Number of Hedge Fund Holders: 24

La-Z-Boy Incorporated (NYSE: LZB) is a Michigan-based furniture maker and it ranks 4th on the list of 10 best furniture stocks to buy now. La-Z-Boy Incorporated is well-known for manufacturing recliners. By the end of Q4 2021, there were 354 independent La-Z-Boy Furniture Galleries stores and 561 independent Comfort Studio sites maintained by the firm.

On July 26, the recliner maker revealed plans to invest more than $30 million in its 500,000-square-foot production facility in Neosho, Missouri over the next two years. In November 2020, La-Z-Boy Incorporated maintained an Outperform rating on La-Z-Boy Incorporated and increased the firm’s price target to $46 per share from the previous $37. Shares of La-Z-Boy Incorporated increased 8.2% in the last year.

The company has a market cap of $1.58 billion. In the fourth quarter of 2021, La-Z-Boy Incorporated reported an EPS of $0.87, exceeding estimates by $0.13. In its fourth-quarter report, the Michigan-based furniture manufacturer recorded a 41.4% growth in revenue year over year to $519.5 million, exceeding analyst expectations by $20.94 million.

By the end of the first quarter of 2021, 24 hedge funds out of the 866 tracked by Insider Monkey held stakes in La-Z-Boy Incorporated, worth roughly $110 million. This is compared to 13 hedge funds in the previous quarter, with stakes worth approximately $84.9 million.

3. Leggett & Platt, Incorporated (NYSE: LEG)

Number of Hedge Fund Holders: 24

Leggett & Platt, Incorporated is a Missouri-based furnishings and fixtures manufacturer and it ranks 3rd on the list of 10 best furniture stocks to buy now. Leggett & Platt, Incorporated markets beddings and textile products. The company also sells motion hardware mechanisms for recliners and lift chairs.

In June, Leggett & Platt, Incorporated raised its quarterly dividend by 5%, announcing a $0.42 per share dividend. On May 5, Raymond James analysts maintained an Overweight rating on Leggett & Platt, Incorporated and increased the firm’s price target to $60 per share. The stock has gained 8%, year to date.

The company has a market cap of $6.35 billion. In the second quarter of 2021, Leggett & Platt, Incorporated reported an adjusted EPS of $0.66, beating estimates by $0.12. The company’s revenue in the second quarter grew 50% year over year to $1.27 billion, beating revenue estimates by $41.9 million. Shares of Leggett & Platt, Incorporated increased 22% in the last twelve months.

By the end of the first quarter of 2021, 24 hedge funds followed by Insider Monkey held stakes in Leggett & Platt, Incorporated with a total value of $83.2 million.

2. Wayfair Inc. (NYSE: W)

Number of Hedge Fund Holders: 37

Wayfair Inc. is an online home-goods retailer based in Boston and it ranks 2nd on the list of 10 best furniture stocks to buy now. Wayfair Inc. sells furniture and home accessories on its e-commerce site.

On August 5, Wayfair Inc. stock jumped 6.60% in premarket trading after the company reported a higher profit than expected. In the second quarter of 2021, Wayfair Inc. reported an EPS of $1.89, beating estimates by $0.73. The company’s revenue in the second quarter was $3.9 billion. After the company’s Q2 report, Jefferies analyst Jonathan Matuszewski maintained a Buy rating on Wayfair Inc. with a price target of $330 per share.

By the end of the first quarter of 2021, 37 hedge funds followed by Insider Monkey held stakes in Wayfair Inc. with a total value of $4.01 billion.

In its Q1 2021 investor letter, Vulcan Value Partners mentioned Wayfair Inc. and shared their insights on the company. Here is what the fund said:

“During the quarter, Wayfair Inc. was a material contributor to the portfolio after reporting strong earnings, increased revenue, positive operating margins, and strong free cash flow generation. The company’s long-term trajectory is positive, and we are pleased to own this business.”

1. The Home Depot, Inc. (NYSE: HD)

Number of Hedge Fund Holders: 68

Topping the list of 10 best furniture stocks to buy now is the Atlanta-based home improvement giant The Home Depot, Inc.. The company sells everything from furniture, lighting, small kitchen appliances, and gardening tools.

The Home Depot, Inc. announced in June 2021 that it will roll out new “Rent Online, Pick-up In Store” technology to around 1,300 equipment rental facilities across the US. Shares of The Home Depot, Inc. climbed 4% in the past month.

On August 6, Credit Suisse analyst Lavesh Hemnani maintained an Overweight rating on The Home Depot, Inc. and increased the firm’s target to $330 per share from the previous $319, following solid Q1 results.

The company has a market cap of $349.56 billion. In the first quarter of 2021, The Home Depot, Inc. reported an EPS of $3.86, beating estimates by $0.81. The company’s first-quarter revenue was $37.5 billion, an increase of 32.7% year over year and beating revenue estimates by $2.87 billion. The stock has gained 31% year to date, and shares increased 19% in the last twelve months.

By the end of the first quarter of 2021, 68 hedge funds followed by Insider Monkey held stakes in The Home Depot, Inc. with a total value of $4.35 billion.

In its Q1 2021 investor letter, Ensemble Capital mentioned The Home Depot, Inc. and shared insights about the company. Here is what the fund said:

“Notable contributors to the Fund’s returns this quarter (included) Home Depot. Home Depot (8.9% weight in the Fund) continued to benefit from a red-hot housing and home improvement market, delivering record financial performance in 2020. As a high return on invested capital business, any step-up in growth results in considerable shareholder value creation. While 2021 comparable sales may not yield impressive headline results, we believe several secular tailwinds are supporting continued housing investment, including millennials entering prime household formation/peak earnings years, relatively low-interest rates, and government policies.

Home Depot (8.9% weight in the Fund): The big orange sign of Home Depot is a familiar sight for homeowners across the country. Despite the rise of Amazon, Home Depot has generated outstanding results for shareholders during the rise of eCommerce, even as Home Depot’s end market in housing suffered the worst collapse in a century. Over the last fifteen years, a period which began at the peak of the housing bubble, Home Depot’s stock has generated annual returns of 17% a year, outperforming the S&P 500 by approximately 7% a year.

But while homeowners can attest to their continued shopping at Home Depot, they may not be aware that only about half the company is dedicated to serving to Do It Yourself, homeowners, with the other half acting as a key supplier to small contractors – which the company calls Pros – who depend on Home Depot as a mission-critical business partner.

While the company does not report on their contractor business separately from their homeowner business, they have regularly offered comments indicating that contractors make up just 4% of their customer base, but about 45% of revenue. Basic math implies that this means the average contractor customer spends about twenty times the amount that the average homeowner customer spends. In an industry where you want to drive high levels of sales per store, the contractor customer profile is super attractive. It is Home Depot’s focus on and success in serving contractors that have led to them generating about 30% more revenue per store than competitor Lowe’s which has far fewer professional contractor customers.

Therefore, we think about Home Depot as two different businesses built on top of a single operational platform that allows them to better leverage their cost structure. This has led the company to generate returns on invested capital of about 45%, putting their top tier of a high return on capital retailers.

Everyone likes growth, but one way to think about companies like Home Depot that generate high returns on invested capital is that these businesses can grow without needing to invest as much in their business to generate any given level of growth compared to companies with lower returns on capital. In the case of Home Depot, their success in growing the business without needing to invest that much to do so is well illustrated by the fact that over the last decade, the number of stores they operate has only increased by 2%, even while revenue has nearly doubled.

On the Pro side of their business, Home Depot is the first choice for small contractors who are not large enough to buy directly from distributors at the scale required to get discounted pricing. If you own a house and have had a contractor do some sort of work, you are familiar with the way that almost every job ends up needing some part or tool that the contractor does not have on hand. In this circumstance, the contractor wants to make as time-efficient of a trip as possible to go pick up the part and complete the job. Since the contractor passes along the cost of parts to the homeowner, it is the efficiency with which Home Depot can get them back to the job site and working, rather than the lowest possible price for the part, that drives the contractor’s shopping behavior. In fact, a number of contractors we’ve talked to describe driving past a Lowe’s to get to a further away Home Depot store because it is their preferred supplier.

Home Depot has also invested heavily in their online capabilities. Truly an “omnichannel” retailer that strives to be able to serve both Pro and Do It Yourself customers via in store shopping, online delivery, or curbside pickup, the company has been held up by Google’s Cloud services group as A CASE STUDY of a data driven retailer using modern data and analytics to drive results.

Of course, when competing with Amazon, having a strong eCommerce or Omnichannel strategy is just table stakes. But due to the nature of home improvement spending, where parts are often needed the same day and in many cases are heavy, bulky objects, the fact that well over 50% of Home Depot’s online orders are picked up in store, despite offering 2-day delivery to 90% of US households, speaks to the unique nature of this category and why we do not view Amazon as a meaningful threat.

While the company has been able to drive growth without building many new stores, they have indeed invested aggressively into three core areas. They’ve invested into their existing stores to keep them up to date and efficiently run. They’ve invested in technology, such as a mobile app that can locate a part in a given store and guide you directly to the aisle it is on. And importantly, they’ve invested in their supply chain, warehouses, and delivery capabilities to allow them to thrive in an omnichannel world. Unlike many retailers who still manage their online offering as a separate division, Home Depot operates as a single company, with a single supply chain, and simply offers different means for customers to shop their single set of inventory.

Their Pro Online investments have been of particular note, given it is with their Pro customers that their offering is most differentiated. The company talks about Pro Online as a “platform for Pros to build their business.” While Amazon, like most consumer facing online retailers, offers the same user interface for consumers and business customers, Home Depot recognizes that the needs of their Pro customers are fundamentally distinct from homeowners.

For instance, their Pro Online interface allows for the exporting of order history to Quickbooks, the accounting software used by most small contractors, and makes it easy to manage delivery options to a large number of active job sites. If you go into a typical consumer online shopping site and try to ship items to multiple addresses other than your own, you’ll quickly trigger a fraud alert. But while this behavior is atypical for consumers, it is standard behavior for Pro contractors who appreciate that Home Depot understands how they operate.

While Pro customers have gone from making up 30% of revenue a decade ago to 45% today, there is meaningful opportunity still ahead. According to the company, 70% of Pro customers never visit the dedicated Pro desk at the store. But when Home Depot is able to identify these contractor customers and engage with them at the Pro Desk or other Pro services, their annual spending quickly doubles on average.

While Home Depot has executed extremely well over the last decade, it did so in the context of a weak overall economy, the worst housing crash in a century, an existing base of homes that had more new homes (needing less home improvement work) than the historical average, and low or even negative equity restricting homeowners’ ability to finance home improvement projects. But we believe the housing end market is in the midst of a Great Reshuffling.

While Home Depot generated solid 5% annual revenue growth during the decade between the end of the housing crash and the beginning of the COVID pandemic, it is important to note that the Do It Yourself homeowner segment grew at about 3% a year, while the Pro segment serving contractors grew at 9% a year. We believe that the low growth of Do It Yourself sales was related to the depressed housing activity that characterized the last decade, but is now in the midst of reverting to more normalized activity levels. The faster growth in the contractor segment on the other hand was due to them taking material market share and building a better set of services for Pro customers. Thus, this segment grew nicely despite the low levels of housing activity and will benefit further from a reversion to more normalized home improvement activity.

As Americans emerge from the pandemic, they will be reevaluating their housing needs. Remote work options may cause more homeowners to consider moving, with home improvement projects being common in preparation for sale as well as when a new family first moves into a house. Many people who do not move will still plan to work from home with some regularity, driving demand to create office space in their house with associated remodeling expenditures.

Home Depot is firing on all cylinders. They did right by their employees during the pandemic, remaining open as an essential business, spending $2 billion in increased pay and bonuses, half of which they have decided to make permanent. While 2021 will face difficult comparisons to last year’s off the charts home improvement spending due to homeowners being stuck in their homes during a shelter in place, we think Home Depot has an extremely promising decade ahead.”

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