It may not be investors' first idea when thinking of home improvement stocks, but Loop Capital sees Best Buy as an under-the-radar pick as the housing market improves.
Loop managing director Anthony Chukumba, who has a buy rating on Best Buy, sees the electronics retailer as a potential "stealth housing play."
"We were encouraged by the latest macroeconomic data, particularly the ongoing labor market strength and the housing market 'green shoots,'" Chukumba wrote to clients.
Chukumba said home furnishing retailers such as Floor & Decor , RH and Williams-Sonoma should also benefit as the housing market improves.
Best Buy shares have struggled this year, shedding about 2% and lagging far behind the rest of the market.
Persons:
Anthony Chukumba, Chukumba
Organizations:
Williams
Locations:
Sonoma, Minnesota