Steiner: An 'Embedded Tailwind' For Home Improvement Stocks

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Includes: CLAW, HOML, ITB, NAIL, PKB, XHB
by: Hedgeye

Summary

It looks like home improvement stocks should experience a bullish tailwind for at least three years, according to Hedgeye housing analyst Josh Steiner.

While supply conditions have remained tight, the data suggests there is still a significant amount of growth remaining in this current housing.

A key beneficiary of that should be home improvement stocks.

Good news for housing investors.

It looks like home improvement stocks should experience a bullish tailwind for at least three years, according to Hedgeye housing analyst Josh Steiner.

While supply conditions have remained tight (for example, see lumber prices skyrocketing in 2018), the data suggests there is still a significant amount of growth remaining in this current housing cycle.

A key beneficiary of that should be home improvement stocks.

"As long as construction levels are below where they should be, and what would be needed to alleviate supply constraint, you have an embedded tailwind in home improvement," Steiner explains.

Watch the full clip for more insight.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.