Buy this 'stealth' home improvement stock as housing market improves, Loop Capital says

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." That's because the company's home appliance and TV sales can benefit as the market for renovations and upgrades rebounds, he said.

"We believe the latter is particularly encouraging given the fact the Federal Reserve's rate cut campaign has yet to commence, and believe Buy-rated Best Buy offers an attractive 'derivative play' on improved home sales given the company's appliance and television businesses and inexpensive relative valuation." Chukumba said home furnishing retailers such as Floor & Decor , RH and Williams-Sonoma should also benefit as the housing market improves.

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