New Year’s resolutions are an excellent opportunity to set new goals and intentions. It’s also the perfect time to reassess your portfolio and make necessary changes. If you want to invest in a sector that will perform well over the coming few years, look no further than the household durables industry. Investing in stocks that offer exposure to this sector can be a profitable move in 2022, as household durables stocks have underperformed the broader market for several years. This article identifies the best household durables stock ideas for 2022 and explains why now is the ideal time to invest in them.
La-Z-Boy Inc. generates revenue through the sale of furniture, as well as reclining chairs and reclining sofas. The company sells its furniture and reclining chairs through its retail stores, as well as through distributors, independent dealers, and online. La-Z-Boy Inc.’s products are sold through furniture galleries, furniture departments of furniture stores, furniture superstores, and other furniture specialty stores. Investing in La-Z-Boy Inc. is an excellent strategy for 2022 for two reasons. First, the company is well positioned to profit from an increase in furniture sales over the next few years as the housing market continues to recover. Second, La-Z-Boy Inc. has a strong brand reputation and a history of pricing power. Over the past decade, the company has seen robust revenue growth. La-Z-Boy Inc. stock is trading at a significant discount to its 10-year average price-earnings ratio. LZB is currently trading at 12.5x forward earnings. This is a great time to buy the stock, given its strong fundamentals and low valuation.
Green Brick Partners (GRBK)
Green Brick Partners LP is a real estate company that invests in acquiring and leasing single-tenant commercial properties, such as medical office buildings, retail properties, and industrial properties. The company owns approximately 65 operating and development/redevelopment properties. Green Brick Partners LP also provides mortgage financing for the construction and acquisition of commercial properties and equity investments in real estate projects. Green Brick Partners LP has several positive factors that make it a great long-term investment prospect. The company has a high growth profile, driven by low-risk, high-yield single-tenant properties. Green Brick Partners LP’s portfolio is diversified across various assets, including healthcare, retail, and industrial. As a result, the company’s cash flows are relatively stable. Green Brick Partners LP also has a strong balance sheet, with almost no debt and substantial cash on the books. The company is well positioned to benefit from rising interest rates, given its short debt duration.
VIZIO Holding (VZIO)
Founded in 2002, VIZIO Inc. designs and manufactures audio video products. VIZIO Inc. offers televisions, sound bars, speakers, and other audio-video products. The company’s products enable users to access audio video content through wireless networks. VIZIO Inc.’s products are available through retail stores, e-commerce websites, and a call center. The company sells its products under the VIZIO, Magnavox, and Sanyo brands. VIZIO is exposed to the consumer’s health as a consumer discretionary stock. And the consumer has been in great shape the last few years, with consumer confidence levels climbing steadily. Consumer spending will likely increase over the coming years as salaries rise and inflation remains moderate, which will be a boon for VIZIO. Another positive factor is VIZIO’s product mix. The company’s higher-end products have done well in a market where many consumers are upgrading their TVs. VIZIO also has a strong brand and is well positioned to benefit from a robust usage of smart TVs and other connected devices.
Cavco Industries (CVCO)
Cavco Industries Inc. is a diversified company focused on designing, manufacturing, and distributing modular and manufactured industrial buildings. The company operates through manufacturing, Distribution, and Engineered Buildings. Cavco Industries Inc. is based in Salt Lake City, Utah.CVCO is an excellent long-term investment idea because it has a strong record of profit growth and prudent capital allocation. The company has grown earnings per share at an average rate of 15.9% over the last decade, and CVCO stock currently trades at a significant discount to its 10-year average price-to-earnings ratio. The company also has a strong balance sheet, with no debt and substantial cash on the books. Cavco Industries Inc. is well positioned to benefit from rising interest rates, given the short duration of its debt.
Investing in stocks that offer exposure to the household durables industry can be a profitable move in 2022. This industry has underperformed in the broader market for several years, so it could use a boost. And the positive long-term factors make this the ideal time to invest in household durables stocks. In the coming years, the household durables industry is expected to grow as the housing market continues to recover. And the household durables industry has several positive factors that make it a great long-term investment prospect.