Free Annual Reports
3 Hot Home Furnishing Stocks
With the recent pickup in home sales, it's worth looking at home furnishing retailers to see how they've fared of late. Generally, these stocks rise on good home purchase news. It turns out that the group has done famously. Below, we list a select trio that have outperformed their peers - stocks that are also key components of the SPDR S&P Homebuilders ETF (NYSE:XHB).
IN PICTURES: 9 Ways To Use A Tax Refund
Raising Guidance, Rising Earnings
Williams-Sonoma, Inc. (NYSE:WSM) is a $3 billion company (by market cap) in the business of selling home furnishings at the retail level. Since the beginning of February, Williams-Sonoma stock is up better than 50%, and for the last year the company has appreciated nearly 115%. This performance far exceeds the 18% turned in by the SPDR Homebuilders ETF over the same period.
Last month, WSM raised its annual dividend by 8.3%, giving the shares an annual yield of 1.76%. It also surprised analysts by raising 2010 full year guidance numbers. Earnings per share figures for the company this latest quarter were smashing - they also came in higher than analyst estimates. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)
Sitting on a Stock that will Pay
Pier 1 Imports, Inc. (NYSE:PIR) is also engaged in the retail furniture and home furnishings business. Year-to-date, Pier 1's shares have climbed a whopping 70% and for the last twelve months the gain has been better than 410%. Compared to the broad market retail sector, Pier 1 is also holding its own. The SPDR S&P Retail ETF (NYSE:XRT) is up only 65% for the last twelve months.
Yet the shares still appear cheap from a number of perspectives. PIR stock's P/E ration is a mere 10.96, and price to sales a lowly 0.80.
An Institutional Darling
Bed Bath & Beyond, Inc. (Nasdaq:BBBY) sells basic housewares and other domestic furnishings through four separate retail subsidiaries. With a market cap of nearly $12 billion and institutional ownership topping 94%, BBBY posted fourth quarter sales of $2.24 billion, an increase of 16.7% from the same period last year (11.5% due to same-store sales).
In news that may not be so promising, Bed Bath & Beyond also led the list of insider sells this last week as co-chairman Leonard Feinstein sold more than 826,000 shares at an average price of $45.33, pocketing better than $37 million on the transaction.
The Wrap
Retailers in the home furnishings trade have seen great business in the last year, with the above three issues staking out some of the best returns of the group. Should the economy remain strong and the housing sector continue to stabilize, look for a lot more upside from this trio. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: 9 Ways To Use A Tax Refund
Raising Guidance, Rising Earnings
Williams-Sonoma, Inc. (NYSE:WSM) is a $3 billion company (by market cap) in the business of selling home furnishings at the retail level. Since the beginning of February, Williams-Sonoma stock is up better than 50%, and for the last year the company has appreciated nearly 115%. This performance far exceeds the 18% turned in by the SPDR Homebuilders ETF over the same period.
Last month, WSM raised its annual dividend by 8.3%, giving the shares an annual yield of 1.76%. It also surprised analysts by raising 2010 full year guidance numbers. Earnings per share figures for the company this latest quarter were smashing - they also came in higher than analyst estimates. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)
Sitting on a Stock that will Pay
Pier 1 Imports, Inc. (NYSE:PIR) is also engaged in the retail furniture and home furnishings business. Year-to-date, Pier 1's shares have climbed a whopping 70% and for the last twelve months the gain has been better than 410%. Compared to the broad market retail sector, Pier 1 is also holding its own. The SPDR S&P Retail ETF (NYSE:XRT) is up only 65% for the last twelve months.
An Institutional Darling
Bed Bath & Beyond, Inc. (Nasdaq:BBBY) sells basic housewares and other domestic furnishings through four separate retail subsidiaries. With a market cap of nearly $12 billion and institutional ownership topping 94%, BBBY posted fourth quarter sales of $2.24 billion, an increase of 16.7% from the same period last year (11.5% due to same-store sales).
In news that may not be so promising, Bed Bath & Beyond also led the list of insider sells this last week as co-chairman Leonard Feinstein sold more than 826,000 shares at an average price of $45.33, pocketing better than $37 million on the transaction.
The Wrap
Retailers in the home furnishings trade have seen great business in the last year, with the above three issues staking out some of the best returns of the group. Should the economy remain strong and the housing sector continue to stabilize, look for a lot more upside from this trio. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
Free Annual Reports
