One of the most dreaded feelings for an investor is discovering that the stock they just purchased is overpriced or that they missed out on an underpriced opportunity by not acting quickly enough.
But what if you had the knowledge to properly evaluate a company before investing?
To avoid being overly confident in a company or being concerned about cyclical changes, investing requires a certain perspective. Having the right tools and resources, as well as a clear monitoring process, is a smart way to remove the guesswork from knowing when to buy or sell a company’s stock.
We will go over the 5 best furniture industry ETFs in this article:
Wayfair
Wayfair sells furniture and home goods online through its own website as well as four others: Joss & Main, AllModern, Birch Lane, and Perigold. It eliminates the need for middlemen retailers by allowing its 22.6 million active customers to purchase products directly from over 23,000 suppliers worldwide.
It has offices and warehouses in the United States, Canada, Germany, Ireland, and the United Kingdom.
On March 22, 2021, Wayfair’s (W -2.21%) stock reached an all-time high of $345.47. At the time, it emerged that the online furniture and home goods retailer was a safe bet on rising home sales and stimulus-induced spending.
However, as of January 26, 2023, Wayfair is trading at around $47 per share. Its stock dropped as new home sales stalled, supply chains were disrupted, and inflation increased shipping costs. Rising interest rates pushed investors away from cyclical stocks.
Wayfair was valued at nearly $36 billion at its peak, or 2.6 times its sales in 2021. It is now only worth $5 billion, or 0.4 times the sales it is expected to generate in 2023.
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Bassett Furniture Industries
Bassett Furniture Industries, Incorporated manufactures, markets, and sells home furnishings in the United States and around the world. It operates in two segments: wholesale and retail-owned stores.
The company’s operations include wood and upholstery operations, as well as the design, manufacture, sourcing, sale, and circulation of furniture products to a network of corporate retail stores, licensee-owned stores, and independent furniture retailers.
It had 58 company-owned stores and 33 licensee-owned stores as of November 26, 2022. Customers in the furniture industry can also use its warehousing services.
In addition, the organization owns and leases retail store properties, other multi-line furniture stores, Bassett galleries or design centers, and online distribution of its products.
Bassett Furniture Industries, Incorporated was established in 1902 by John D. Bassett, Charles C. Bassett, Samuel H. Bassett, and Reed L. Stone.
La-Z-Boy Incorporated (LZB)
La-Z-Boy is a reclining chair manufacturer and, In the United States, a manufacturer/distributor of residential furniture.
La-Z-Boy Co.’s reportable operating segments include the Wholesale segment and the Retail segment.
The company’s Wholesale division manufactures and imports upholstered furniture, including recliners and motion furniture, sofas, loveseats, chairs, sectionals, modular, ottomans, and sleeper sofas, as well as case goods furniture, including occasional pieces, entertainment centers, bedroom sets, dining room sets.
Through these stores, Co.’s Retail segment primarily sells upholstered furniture to end users, as well as some case goods and other accessories.
La-Z-Boy Incorporated is a publicly-traded company, and it is a holding in 102 US-traded ETFs. LZB has approximately 13.7 million shares in the US ETF market. With approximately 3.20M shares, the iShares Core S&P Small-Cap ETF (IJR) is the largest ETF holder of LZB.
Investors may also be interested in the fact that First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) has the highest allocation to LZB stock, with a portfolio weight of 1.06%. On average, US ETFs include 0.16% LZB in their portfolios.
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Leggett-and-Platt Incorporated (LEG)
Leggett & Platt, Incorporated is a manufacturer that creates, designs, and manufactures a variety of engineered components and products that can be found in a variety of homes and automobiles.
The company’s Bedding Products division manufactures adjustable bed bases, private-label finished mattresses for bedding brands and other items that are used by bedding manufacturers to produce and assemble their finished products.
Leggett & Platt, Incorporated is a publicly-traded company and a holding in 123 U.S.-traded ETFs.
LEG has approximately 35.8 million shares in the US ETF market. With approximately 11.39M shares, the SPDR S&P Dividend ETF (SDY) is the largest ETF holder of LEG.
Investors may also be interested in the fact that the ETF with the highest allocation to LEG stock is the Invesco High Yield Equity Dividend Achievers ETF (PEY), which has a portfolio weight of 2.32%. On average, US ETFs include 0.27% LEG in their portfolios.
LEG is also a favorite stock for Vanilla and Multi-factor ETFs. It is also likely to be in Broad-based ETFs. The AGFiQ US Market Neutral Anti-Beta Fund (BTAL) is the best-performing ETF, with LEG as a holding over the last year, returning 15.84%.
American Woodmark Corporation (AMWD)
Is a US-based manufacturer and distributor of kitchen, bath, office, home organization, and hardware products for the remodeling and new home construction markets.
The company sells made-to-order and cash-and-carry items. It also offers turnkey installation services to its direct builder customers via an eight-service center network.
American Woodmark Corporation is a publicly traded company, and it holds 71 U.S.-traded ETFs.
AMWD has approximately 4.3 million shares in the US ETF market. The iShares Core S&P Small-Cap ETF (IJR) is the largest ETF holder of AMWD, with approximately 1.24M shares.
Investors may also be interested in the fact that Hoya Capital Housing ETF (HOMZ) has the highest allocation to AMWD stock, with a portfolio weight of 0.71%. ETFs in the United States invest 0.08% of their assets in AMWD.
Conclusion
While it is possible to profit from investing in furniture stocks, keep in mind that, like any other investment, furniture stocks are not risk-free.
These stocks are subject to a fluctuating market and home and office furnishing industry conditions, so carefully vet your picks before investing.
And, if you’re new to investing or haven’t looked over your accounts in a while, compare brokers to ensure you’re getting the best features in your trading account.
