The pandemic has been good to home improvement companies and their stocks. Lowe’s gained 34% in 2020, while rival Home Depot was up 22%. Williams-Sonoma ended the year 39% higher, and even beleaguered Bed Bath & Beyond enjoyed a small 3% rise. But the top winner in this space was arguably Wayfair (NYSE: W), up 150% last year after posting phenomenal sales and earnings growth.
Best of all, investors can expect those gains to continue in 2021.
There was a huge uptick in digital adoption during the pandemic as customers shopped from their homes, but while some of that spending is returning to physical stores as they reopen, there’s no turning back from the allure of e-commerce.