(Bloomberg) — Global tech stocks aren’t the only ones due an investor checkup. Home improvement companies have also surged during the pandemic, and it’s fair to ask if this is as good as it gets.
An equal-weighted basket of 30 of the world’s biggest home improvement companies is up 23% this year, easily besting the 2% rise in the MSCI AC World Index, according to data compiled by Bloomberg. The gauge has almost doubled from its March lows, outpacing even the 63% rise in the high-flying Nasdaq-100 Index.
The gains have left stocks in the basket — including U.S. giant Home Depot Inc., Kingfisher Plc from the U.K. and Germany’s Hornbach Holding AG — trading on an average of 25 times forward earnings, up from 19 times at the end of February.
While the coronavirus has upended large swathes of