In this piece, we will take a look at the five best furniture-related stocks to buy now. For more stocks, and our introduction to the industry, take a look at 11 Best Furniture-Related Stocks to Buy Now.
5. Purple Innovation, Inc. (NASDAQ:PRPL)
Number of Hedge Fund Holders: 13
Purple Innovation, Inc. (NASDAQ:PRPL) is an American company that manufactures and sells a variety of products such as mattresses, pillows, bed frames, blankets, and duvets. The company is headquartered in Lehi, Utah.
Purple Innovation, Inc. (NASDAQ:PRPL) signed an agreement with another furniture company earlier this year, through which it will significantly expand its retail presence in the U.S. by adding 636 stores to its portfolio. The company also has a strong balance sheet, through which it holds total assets of $625 million compared to $140 million of operating leases and long term debt obligations.
Wedbush increased Purple Innovation, Inc. (NASDAQ:PRPL)’s share price target to $5 from $3.3 in September 2022, sharing that a recent buyout offer of $4.5 per share is still not enough, and is likely to be increased. By the end of this year’s second quarter, 13 out of the 895 hedge funds polled by Insider Monkey had owned the company’s shares.
Purple Innovation, Inc. (NASDAQ:PRPL)’s largest investor is Christopher Shackelton and Adam Gray’s Coliseum Capital which owns 40 million shares that are worth $125 million.
4. The Lovesac Company (NASDAQ:LOVE)
Number of Hedge Fund Holders: 13
The Lovesac Company (NASDAQ:LOVE) manufactures and sells furniture products such as foam beanbags, chairs, drink holders, fitted seat tables, and ottomans. The company is headquartered in Stamford, Connecticut.
The Lovesac Company (NASDAQ:LOVE) has been growing its revenue by a compounded annual growth rate (CAGR) of 47.6% over the past five years, making it outpace most of the industry. The company’s strongest product is its Sactional, which provides buyers to create a wide variety of different furniture pieces simply by buying more pieces from the company instead of purchasing new products. This makes The Lovesac Company (NASDAQ:LOVE) a rare furniture company with recurring revenue.
The Lovesac Company (NASDAQ:LOVE) also likely has the strongest customer loyalty in the furniture industry, particularly due to the Sactional. The company’s fiscal year 2021 saw close to 46% of transactions come from repeat customers. Insider Monkey’s Q2 2022 survey saw 13 investors in the firm.
The Lovesac Company (NASDAQ:LOVE)’s largest investor is Paul Marshall and Ian Wace’s Marshall Wace LLP which owns 514,193 shares that are worth $14 million.
3. Kimball International, Inc. (NASDAQ:KBAL)
Number of Hedge Fund Holders: 13
Kimball International, Inc. (NASDAQ:KBAL) sells furniture products in the U.S. and globally under a host of different brands. These products include workstations, storage, headboards, vanities, and seating. The company is headquartered in Jasper, Indiana.
Kimball International, Inc. (NASDAQ:KBAL)’s third fiscal quarter results revealed that the company grew its revenues annually by a strong 31%, which also ended up beating analyst expectations by 5.3%. The growth was driven by the company’s work and healthcare division reporting a whopping 41% annual growth. The company also expects to bring in $185 million in revenue by the end of this year.
Despite this, Kimball International, Inc. (NASDAQ:KBAL) is trading at a relatively weak P/E ratio of 8.5x, implying that there is growth left in its stock price. The company also pays a 9 cent dividend for a strong 5.23% yield, and by the end of this year’s second quarter, 13 out of the 895 hedge funds had held a stake in it.
Kimball International, Inc. (NASDAQ:KBAL)’s largest investor is Jim Simons’ Renaissance Technologies which owns 1.7 million shares that are worth $13 million.
2. La-Z-Boy Incorporated (NYSE:LZB)
Number of Hedge Fund Holders: 16
La-Z-Boy Incorporated (NYSE:LZB) is an upholstery furniture products manufacturer and distributor that is headquartered in Monroe, Michigan, the United States. Its products include recliners, sofas, and chairs.
La-Z-Boy Incorporated (NYSE:LZB) set a new record by the end of its first fiscal year when it reported an 8.7% operating margin for an operating income of $52.6 million. The quarter saw its retail function perform strongly, as sales through the channel grew by 30% annually.
La-Z-Boy Incorporated (NYSE:LZB) is also aiming for strong revenue growth for its fiscal year 2022, with management guiding a growth ranging between 23% and 25%. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 16 investors in the firm.
Out of these, Dmitry Balyasny’s Balyasny Asset Management is La-Z-Boy Incorporated (NYSE:LZB)’s largest investor. It owns 281,305 shares that are worth $6.6 million.
1. Arhaus, Inc. (NASDAQ:ARHS)
Number of Hedge Fund Holders: 16
Arhaus, Inc. (NASDAQ:ARHS) is an American company that provides a host of products such as dining tables, sofas, chairs, consoles, coffee tables, and beds. The company is headquartered in Boston Heights, Ohio.
Arhaus, Inc. (NASDAQ:ARHS) is one of the strongest growing companies in the furniture industry. The company grew its revenue by a whopping 57% in 2021, and if this isn’t enough, it plans to further grow revenue this year by another 50%. Additionally, this growth trend can be maintained in 2023 as well, as management estimates that the orders that the firm has received so far will not be cleared until mid-2023.
Arhaus, Inc. (NASDAQ:ARHS) has a net debt of $214 million, which is 146% of its operating cash flow of $146 million in 2021. In simple terms, the debt can easily be funded by the operating cash flows and it de-risks the firm to an extent. As this year’s second quarter ended, 16 out of the 895 hedge funds polled by Insider Monkey had held Arhaus, Inc. (NASDAQ:ARHS)’s shares.
Arhaus, Inc. (NASDAQ:ARHS)’s largest investor is Jeff Osher’s No Street Capital which owns 1.6 million shares that are worth $7.2 million.
Disclosure: None. You can also take a look at 10 Best Global Stocks To Buy and 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
