Restoration Hardware Holdings Inc (RH), Tile Shop Hldgs, Inc. (TTS): Take Advantage of the Housing Boom

Norcros plc (LON:NXR) manufactures shower fittings, bathroom accessories, floor tiles and glue. It has a P/E of 8 and a dividend yield of 3.5%. Earnings have grown steadily but not spectacularly over the last few years, but this has been at a time of torrid market conditions. If Osborne’s housing bubble doesn’t materialize, this is an investment that is still very fairly valued. But if house sales rise as predicted, this could prove a very rewarding investment.

Bottom line

Basing an investment strategy on the macro environment can often have unexpected results. Even the best commentators have been unable to predict dramatic changes to the economy in the past. But by combining the selection of good businesses with favorable market conditions, you can reduce the chances of things going awry. These three companies all have the potential to grow in any market, but if housing does take off as we expect, they may do very well indeed.

The article Take Advantage of the Housing Boom originally appeared on Fool.com and is written by Ian Richards.

Ian Richards owns shares in Restoration Hardware Holdings Inc (NYSE:RH), Tile Shop Hldgs, Inc. (NASDAQ:TTS) and Norcros plc (LON:NXR). The Motley Fool recommends Tile Shop Holdings. The Motley Fool owns shares of Tile Shop Holdings. Ian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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