The household durables sector is home to some of the world’s largest and most profitable companies. These businesses manufacture everything from refrigerators, washing machines, and vacuum cleaners to furniture and plumbing fixtures. Because the products these firms produce are essential to daily life, they tend to be recession-proof. That said, not all household stocks are created equal. Some offer better value than others right now. But which stocks are they? Read on for a complete list of household stock picks and an analysis of whether or not each one qualifies as a good investment at this time.
Green Brick Partners (GRBK)
Green Brick Partners is a real estate investment trust (REIT) specializing in the industrial sector. The company invests in single-tenant, net-leased industrial properties in major North American markets.GRBK invests in industrial properties, including distribution and light manufacturing facilities, warehouses, and transportation terminals. The company’s target assets are in densely populated areas with access to major highways and shipping routes. Green Brick Partners owns a portfolio of industrial properties worth $1.7 billion. The company’s portfolio includes 218 properties in 14 states. More than 80% of GRBK’s net lease portfolio is located in the Eastern half of the U.S.
VIZIO Holding (VZIO)
Vizio was one of the first companies to introduce smart TVs, and it remains one of the most popular brands in the U.S. The company’s products are available through retailers such as Best Buy and Walmart, as well as Vizio’s online store. Vizio’s HDTVs have built-in SmartCast technology that lets users stream video content from apps such as Netflix, Prime Video, and Hulu. Vizio also offers SmartCast-enabled sound bars, sound systems, and other audio equipment. Vizio’s competitive advantage is its wide product assortment. The company’s TVs come in various screen sizes, resolutions, and price points. Vizio also offers a variety of add-on devices, such as sound bars and streaming media players.
Cavco Industries (CVCO)
Cavco Industries is the leading manufacturer of modular buildings and manufactured housing in North America. The company distributes its products through a network of company-owned retail stores and a network of independent dealers. Cavco’s modular buildings come in a wide range of styles and sizes. These portable structures can be used for everything from office and retail spaces to storage units and medical clinics. The manufactured housing segment has seen robust growth in recent years, driven by homeownership rates. Cavco also owns an RV dealership, which has seen increased sales of golf-cart-type RVs.While the RV market has seen robust growth in recent years, it’s important to note that this is not a cyclical business. In other words, RV sales don’t rise and fall based on the economy.
These household durables stocks are all well-positioned to perform well in the coming years. But not all of them offer good value right now. So which stocks should you buy? Our best value pick is La-Z-Boy. The company has a wide product assortment, which has helped it perform well during recessionary periods.
Meanwhile, La-Z-Boy has been investing in ways to improve its e-commerce operations. This will likely pay off in the coming years as more consumers shop online. Our other two stocks, Green Brick Partners and Cavco Industries are good buys at current prices. Both companies are well diversified, with exposure to various growing industries. That makes them long-term solid performers in any economic climate.