Four Publicly Traded Furniture Companies Worth Tracking as Industry Momentum Builds

The furniture sector is quietly gaining traction, driven by a confluence of tailwinds that are reshaping investor sentiment. Housing market stabilization, rising consumer optimism fueled by anticipated rate cuts, and moderating inflation are all converging to support industry growth. For investors seeking exposure to this revival, publicly traded furniture companies like Flexsteel Industries, Inc. (FLXS), Leggett & Platt, Incorporated (LEG), American Woodmark Corporation (AMWD), and MillerKnoll, Inc. (MLKN) present compelling opportunities.

Why Now? The Case for Furniture Stocks

The tailwinds are significant. Beyond macro improvements, manufacturers are channeling capital into technological innovation and e-commerce capabilities. Strategic acquisitions continue to expand global reach, while product innovation remains the cornerstone of competitive advantage. Yes, intense competition and rising operational costs pose challenges, but disciplined cost management is enabling leading players to maintain margins and market position.

The Zacks Furniture industry currently holds a Zacks Industry Rank of #92, placing it in the top 37% of over 250 industries—a testament to improving earnings trajectories across the sector. Since December 2023, 2024 earnings estimates for the industry have climbed 4.5% to $2.78 per share, reflecting growing analyst confidence.

Valuation: A Compelling Entry Point

From a valuation perspective, publicly traded furniture companies are trading at a meaningful discount to broader equity benchmarks. The industry’s forward 12-month P/E ratio stands at 14.1x, compared to 20.9x for the S&P 500 and 18x for the Consumer Discretionary sector. This discount suggests room for expansion, especially if the industry’s earnings momentum continues.

Industry Performance: The Numbers Tell a Story

Over the past year, the Zacks Furniture industry has gained 7.9%, outpacing the Consumer Discretionary sector’s 5.3% rise, though trailing the S&P 500’s impressive 22.1% advance. This divergence highlights that while the sector has benefited from broader recovery trends, it remains underappreciated relative to the overall market.

Four Stocks Attracting Investor Attention

Flexsteel Industries (FLXS) - Zacks Rank #1 (Strong Buy)

This Dubuque, IA-based upholstered furniture manufacturer has demonstrated remarkable resilience despite consumer spending shifting away from home furnishings. The company’s edge lies in operational discipline—sustained productivity gains, stringent cost controls, and deliberate pricing management have protected profitability. New product initiatives are expected to further bolster growth prospects.

The numbers are impressive: FLXS has surged 70.6% over the past 12 months. More importantly, earnings estimates for fiscal 2024 have been revised upward to $1.95 per share from $1.50 over the past month, suggesting 124.1% year-over-year growth. With a favorable VGM Score of A and a track record of beating consensus in two of the last four quarters, FLXS appears to have genuine momentum behind it.

Leggett & Platt (LEG) - Zacks Rank #2 (Buy)

Carthage, MO-based Leggett manufactures engineered components and products for residential, commercial, and automotive applications globally. The company is executing on its long-term strategic vision, with accretive acquisitions bolstering growth initiatives. Management remains committed to reinvesting in current operations while expanding the product portfolio.

Despite a challenging year—the stock declined 40.7% over the past 12 months—analyst sentiment is gradually improving. Fiscal 2024 earnings estimates have edged up from $1.37 to $1.39 per share in recent weeks. While the pace of recovery may be gradual, the company’s VGM Score of A and strong acquisition pipeline suggest a potential inflection point for longer-term investors.

American Woodmark (AMWD) - Zacks Rank #3 (Hold)

As one of North America’s largest kitchen and bath cabinet manufacturers, American Woodmark has navigated a period of moderate demand through operational expansion. A substantial backlog, coupled with investments in production capacity and staffing productivity, positions the company for accelerating output and revenue growth.

Performance has been solid: AMWD gained 60.8% over the past year, and fiscal 2024 earnings estimates have climbed to $8.47 per share from $8.17 over the past 60 days, implying 11.2% year-over-year expansion. Notably, the company has beaten earnings expectations in three of the trailing four quarters, with an average positive surprise of 25.4%. The accompanying VGM Score of A reinforces the investment case.

MillerKnoll (MLKN) - Zacks Rank #3 (Hold)

This Zeeland, MI-based global interior furnishings company is deliberately diversifying its portfolio and deepening penetration in resilient sectors such as healthcare and the public sector. Technology investments are enhancing customer experience and operational efficiency, while dealer partnerships are being strengthened to ensure seamless execution.

MLKN has delivered consistent results, rising 17.2% over the past year while beating consensus earnings expectations in all four most recent quarters—an average positive surprise of 33.3%. Fiscal 2024 earnings are projected to grow 11.9% year-over-year, and the company carries an impressive VGM Score of A.

The Bottom Line

The confluence of housing recovery, consumer confidence stabilization, and operational excellence at leading manufacturers is creating an attractive backdrop for publicly traded furniture companies. While valuation multiples remain reasonable and earnings momentum appears to be accelerating, investors should view this sector through a selective lens—stock-picking matters more than broad exposure. The four companies highlighted above each bring distinct strengths to the table and warrant consideration within a diversified portfolio.