The 3 Most Undervalued Home Improvement Stocks to Buy in March 2024


  • Low valuations and headwinds may turn investors away from these undervalued home improvement stocks, but continued growth and promising results from last year might change their minds.
  • Lowes (LOW): Despite exponential growth in the stock over the last five years, this home improvement giant’s price is still far below its peak.
  • Arhaus (ARHS): Arhaus has seen massive gains over the last month thanks to a promising Q4 and an exciting new expansion strategy.
  • Floor and Decor (FND): Floor and Decor shows excellent promise, setting itself apart from larger competitors and supporting continued growth.
undervalued home improvement stocks - The 3 Most Undervalued Home Improvement Stocks to Buy in March 2024

Source: Don Pablo /

The housing market is one of the largest in the world and accounts for trillions of dollars of spending worldwide. On top of this popularity, home improvement surged during the pandemic, propelling several major companies to new heights. Many companies are facing industry headwinds and consistent demand for home improvement. However, these three home improvement stocks remain at a low price and are undervalued, given their market positions, profits and growth performances.

Discover the expansions, year-over-year statistics and surprisingly low valuations affecting each of these undervalued home improvement stocks and why they could be a great buy this month.

Lowes (LOW)

the front of a Lowe's store
Source: Helen89 /

Lowes (NYSE:LOW), a popular home improvement retail giant, has demonstrated tremendous growth over the last five years at over 130%, outperforming the S&P 500 by a sizeable margin. Lowe’s has a variety of products and incredible availability, with over 1700 stores nationwide.

Despite its continued showing, Lowes is at a low price far from its peak during the pandemic. Current economic trends, such as higher interest rates and inflation, are causing homeowners to hesitate to spend on projects.

However, Lowe’s has been making strides to combat dips in home improvement spending and expand their professional customer base to improve financial performance. Perks for professionals include a loyalty program and various discounts.

Lowe’s falls short of Home Depot (NYSE:HD) in this category, but it has the means to catch up in the coming years. With a trailing P/E ratio of 18.79, it is a much better deal than Home Depot’s 24.8. Patient investors can take advantage of this low valuation and reap the benefits that Lowe’s has often presented.

Arhaus (ARHS)

An image of the Arhaus, Inc. (ARHS) logo

A massive home furnishing retailer with almost 100 stores nationwide and a complete online catalog, Arhaus (NASDAQ:ARHS) is an undervalued and underestimated home improvement stock. 

Currently hovering at around $15.80, this stock has seen a nearly 24% price jump in the last month. This sudden surge results from the impressive Q4 report released last month, showing 6.8% quarterly revenue growth and expected 2 to 4% growth for 2024.

In addition to these promising financials, Arhaus concluded 2023 on top of significant developments and projects as part of the company’s fast-paced expansion. Last year alone, Arhaus opened 11 new showrooms and eight renovation projects to boost brand awareness and nationwide visibility.

Despite a short-term price jump after its Q4 report and expansion declaration, Arhaus is still undervalued, especially considering its potential this year and many more to come. 

Floor and Decor (FND)

A close-up shot of a front of a Floor & Decor (FND) location.
Source: Michael Vi /

Floor and Decor (NYSE:FND) specializes in hard flooring and offers a more detailed selection than major competitors like Lowe’s and Home Depot. FND is priced at around $120 but has grown consistently over the last year. Floor and Decor continues to set itself apart in terms of strategy and offerings.

Floor and Decor has a distinctive supplier relationship system that allows it to buy directly from the source. This means it receives significant discounts from bulk purchases and offers lower prices than similar products in other stores.

Through focused, diverse products, Floor and Decor has expanded to 221 locations in the U.S., opening five design studios. Last year, it even acquired the flooring solutions company Salesmaster to expand its inventory and supply chain capacity.
The company is showing a promising rise this year after Floor and Decor announced a better-than-anticipated $.34 EPS from Q4 and a 3.5% increase in net sales from fiscal 2023. With more stores opening this year and such a low valuation, there’s a chance to see real profits this year.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Joel Lim is a contributor at and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

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