Haverty Furniture Companies: Undercovered And Undervalued
Monday, June 15, 2015
Posted by: Elizabeth Nicholas
Haverty Furniture Companies: Undercovered And Undervalued - Seeking Alpha
June 10, 2015
The greater economic climate signals opportunity for a near-premium furniture retailer like HVT. U.S. home improvement and furnishing industry sales are forecast to increase 5.7% through this year and continue growing at mid single digits through 2019 - led by the "Consumer Market" category.
"With continued strong employment growth, a pick-up in wage growth, and the consumer dividend from lower gasoline prices, we expect the pace of home improvement product sales growth to accelerate in 2015" -Home Improvement Research Institute
Unsurprisingly, industry sales are highly correlated to new and existing home sales which, as seen below, are also expected to accelerate through 2016 after a pause last year.