BANK OF AMERICA: Buy these 8 retail stocks as they rake in revenues from an unprecedented surge in home-improvement spending
If you can’t leave your house, it might as well look nice.
That’s become a surprisingly powerful stock market theme in 2020, as people who have few travel and outside entertainment options are getting busy sprucing up their homes.
Bank of America analysts Elizabeth Suzuki, Curtis Nagle, and Justin Post, are giving investors tips on how to benefit from this trend. The firm recently surveyed 1,054 people about their retail spending habits, and found that there are a couple of key themes underscoring how huge the home improvement fad is.
“Our survey found that over 70% of respondents have taken on home improvement projects during the outbreak of COVID-19, and plan to do more in the next year,” they wrote, adding that Bank of America’s credit and debit card spending data back that up.
That’s an especially big deal for retailers who focus on do-it-yourself-ers. Meanwhile, a drop in spending on vacations and cars is freeing up income for major home-goods purchases, which is good news for high-end home furnishings retailers.
“There appears to be pent-up demand for high-ticket home furnishing categories such as sofas and mattresses, particularly for high-income consumers,” the analysts wrote.
They combine those observations with the well-known increase …continued .
[Source: Business Insider]