When my family moved to Florida, my wife and I had one major concern: how we would decorate our new home.
We debated between rustic wood and coastal beach-house elements.
This is a common dilemma for folks moving into new homes.
The U.S. home decor market will top $200 billion by 2024. This market leader in home decor rates a 99.
The chart above shows that the value of the home décor market in the U.S. will climb 15% from 2020 to 2024.
Today’s Power Stock helps people decorate their homes with high-end furnishings: Ethan Allen Interiors Inc. (NYSE: ETD).
Ethan Allen manufactures and sells its branded home furnishings, including couches, dining room sets and bedroom suites.
The 90-year-old company also goes a step further and designs home interiors from scratch.
ETD stock scores a “Strong Bullish” 99 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
Ethan Allen Stock: Green on All 6 Factors
ETD reported a fantastic quarter.
High points include:
- Quarterly revenue of $230 million — an increase of 28.8% from the same quarter a year ago!
- Increased its quarterly dividend by 10%.
The Stock Power Ratings above shows that ETD rates in the green on all six metrics, but it rates highest on value and quality.
ETD’s price-to-earnings ratio of 5.9 is more than 3 times lower than the household appliances and furnishing sector average. Ethan Allen stock is a bargain compared to its peers!
When we contrast its return on assets of 14.7% to the industry average of 1.9%, we also see that ETD stock is a much higher-quality stock than its peers.
Now, let’s get into its “Strong Bullish” momentum:
From June 2022 to August 2022, ETD stock rose 35%.
The S&P 500 gained just 13.9% over the same time … meaning ETD beat the broader market by nearly 3X!
Over the last 12 months, the stock is up 9.3%, while its peers averaged a decline of 27.8% over the same time.
Ethan Allen Interiors stock scores a 99 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
The home décor market is growing as folks put their own unique stamps on their home design.
One of the biggest names in household furnishings, ETD is a smart addition to your portfolio.
Stay Tuned: “Strong Bullish” Maker of Security Products
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on an excellent company that focuses on electronic locking devices, alarm systems and building-access control systems.
Matt Clark, CMSA®
Research Analyst, Money & Markets
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