6 Undervalued Household Durables Stocks for Wednesday, September 03

By Tudor Pop
September 03, 2025
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Household Durables industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Household Durables Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Household Durables Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Household Durables industry for Wednesday, September 03, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Household Durables industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Hamilton Beach Brands Holding Company HBB 0.33 6.4 6.8 7.4% 1.24 na A
Hovnanian Enterprises, Inc. HOV 0.28 6.6 na 1.2% 1.15 8.5 A
KB Home KBH 0.68 8.3 8.1 9.1% 1.07 na A
Leggett & Platt, Incorporated LEG 0.30 9.1 11.4 1.2% 1.47 5.9 A
Mohawk Industries, Inc. MHK 0.77 17.3 7.0 2.0% 0.98 17.0 A
M/I Homes, Inc. MHO 0.89 8.0 5.3 3.7% 1.25 30.2 A

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Hamilton Beach Brands Holding Company’s Value Grade

Value Grade:

Metric Score HBB Industry Median
Price/Sales 13 0.33 0.70
Price/Earnings 6 6.4 11.8
EV/EBITDA 18 6.8 9.9
Shareholder Yield 8 7.4% 2.2%
Price/Book Value 34 1.24 1.47
Price/Free Cash Flow na na 20.3

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides consumer products under the Hamilton Beach and Proctor Silex brands; products under the Hamilton Beach Professional in the premium market; farm-to-table and field-to-table food processing equipment under the Weston brand; garment care products under the CHI brand; cocktail delivery system under the Bartesian brand; home appliances products under the Clorox brand; countertop electric water filtration appliances under the Brita Hub brand; and plant-based milk makers under the Numilk brand. In addition, it offers digitally connected devices to manage at home chronic conditions to use injectable medications; and commercial products under the Hamilton Beach Commercial and the Proctor Silex Commercial brands. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety stores, warehouse clubs, specialty home retailers, distributors, restaurants, fast food chains, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hamilton Beach Brands Holding Company has a Value Score of 98, which is considered to be undervalued.

When you look at Hamilton Beach Brands Holding Company’s price-to-sales ratio at 0.33 compared to the industry median at 0.70, this company has a lower price relative to revenue compared to its peers. This could make Hamilton Beach Brands Holding Company’s stock more attractive for value investors.

Hamilton Beach Brands Holding Company’s price-earnings ratio is 6.40 compared to the industry median at 11.75. This means it has a lower share price relative to earnings compared to its peers. This could make Hamilton Beach Brands Holding Company more attractive for value investors.

Now, let’s assess Hamilton Beach Brands Holding Company’s EV/EBITDA ratio, also known as enterprise multiple. At 6.8, when compared to the industry median of 9.9, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Hamilton Beach Brands Holding Company’s shareholder yield is higher than its industry median ratio of 2.20%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Hamilton Beach Brands Holding Company’s price-to-book ratio is lower than its industry median ratio of 1.47. This could make Hamilton Beach Brands Holding Company more attractive to investors looking for a new addition to their portfolio.

Hovnanian Enterprises, Inc.’s Value Grade

Value Grade:

Metric Score HOV Industry Median
Price/Sales 11 0.28 0.70
Price/Earnings 6 6.6 11.8
EV/EBITDA na na 9.9
Shareholder Yield 36 1.2% 2.2%
Price/Book Value 30 1.15 1.47
Price/Free Cash Flow 18 8.5 20.3

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title services. Hovnanian Enterprises, Inc. was founded in 1959 and is headquartered in Matawan, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hovnanian Enterprises, Inc. has a Value Score of 95, which is considered to be undervalued.

Hovnanian Enterprises, Inc.’s price-earnings ratio is 6.6 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Hovnanian Enterprises, Inc. more attractive for value investors.

Hovnanian Enterprises, Inc.’s price-to-book ratio is higher than its peers. This could make Hovnanian Enterprises, Inc. less attractive for value investors when compared to the industry median at 1.47.

You can read more about Hovnanian Enterprises, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

KB Home’s Value Grade

Value Grade:

Metric Score KBH Industry Median
Price/Sales 24 0.68 0.70
Price/Earnings 10 8.3 11.8
EV/EBITDA 25 8.1 9.9
Shareholder Yield 5 9.1% 2.2%
Price/Book Value 27 1.07 1.47
Price/Free Cash Flow na na 20.3

KB Home operates as a homebuilding company in the United States. The company operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells a variety of homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also provides financial services, such as mortgage banking services comprising residential consumer mortgage loan originations to homebuyers; property and casualty insurance services, as well as earthquake, flood, and personal property insurance products to homebuyers; and title services. It conducts operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is based in Los Angeles, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

KB Home has a Value Score of 96, which is considered to be undervalued.

KB Home’s price-earnings ratio is 8.3 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes KB Home more attractive for value investors.

KB Home’s price-to-book ratio is higher than its peers. This could make KB Home less attractive for value investors when compared to the industry median at 1.47.

You can read more about KB Home’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Leggett & Platt, Incorporated’s Value Grade

Value Grade:

Metric Score LEG Industry Median
Price/Sales 12 0.30 0.70
Price/Earnings 13 9.1 11.8
EV/EBITDA 45 11.4 9.9
Shareholder Yield 36 1.2% 2.2%
Price/Book Value 41 1.47 1.47
Price/Free Cash Flow 11 5.9 20.3

Leggett & Platt, Incorporated designs, manufactures, and sells engineered components and products in the United States, Europe, China, Canada, Mexico, and internationally. The company offers steel rod, drawn wire, innersprings, specialty foam chemicals and additives, for use in bedding and furniture, semi-finished mattresses, private label finished mattresses, pillows and toppers, static foundations, adjustable beds, machines to produce innersprings, industrial sewing and quilting machines, and mattress-packaging and glue-drying equipment to industrial users of steel rod and wire, manufacturers of finished bedding, bedding brands and mattress retailers, e-commerce retailers, big box retailers, department stores, and home improvement centers. It also provides mechanical and pneumatic lumbar support and massage systems for automotive seating, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless-steel tubing, formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems; and engineered hydraulic cylinders to automobile original equipment manufacturers (OEMs) and suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs. In addition, the company offers steel mechanisms and motion hardware; springs and seat suspensions; components and private label finished goods for soft seating; bases, columns, back rests, casters, and frames for office chairs and control devices; and carpet cushion and hard surface flooring underlayment, structural fabrics, and geo components for manufacturers of upholstered and office furniture, flooring retailers and distributors, contractors, landscapers, road construction companies, retailers, government agencies, mattress and furniture producers, and manufacturers of draperies, specialty packaging, filtration, and automotive upholstery. Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Leggett & Platt, Incorporated has a Value Score of 88, which is considered to be undervalued.

Leggett & Platt, Incorporated’s price-earnings ratio is 9.1 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Leggett & Platt, Incorporated more attractive for value investors.

Leggett & Platt, Incorporated’s price-to-book ratio is lower than its peers. This could make Leggett & Platt, Incorporated fairly attractive for value investors when compared to the industry median at 1.47.

You can read more about Leggett & Platt, Incorporated’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Mohawk Industries, Inc.’s Value Grade

Value Grade:

Metric Score MHK Industry Median
Price/Sales 26 0.77 0.70
Price/Earnings 43 17.3 11.8
EV/EBITDA 19 7.0 9.9
Shareholder Yield 31 2.0% 2.2%
Price/Book Value 23 0.98 1.47
Price/Free Cash Flow 42 17.0 20.3

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, decorative panels, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, Elizabeth, Lentex Flooring, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC Resilient Design, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Home, Lentex, Leoline, Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to home centers, company-owned service centers and stores, floor covering retailers, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Mohawk Industries, Inc. has a Value Score of 82, which is considered to be undervalued.

Mohawk Industries, Inc.’s price-earnings ratio is 17.3 compared to the industry median at 11.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Mohawk Industries, Inc. less attractive for value investors.

Mohawk Industries, Inc.’s price-to-book ratio is higher than its peers. This could make Mohawk Industries, Inc. less attractive for value investors when compared to the industry median at 1.47.

You can read more about Mohawk Industries, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

M/I Homes, Inc.’s Value Grade

Value Grade:

Metric Score MHO Industry Median
Price/Sales 29 0.89 0.70
Price/Earnings 9 8.0 11.8
EV/EBITDA 12 5.3 9.9
Shareholder Yield 21 3.7% 2.2%
Price/Book Value 34 1.25 1.47
Price/Free Cash Flow 65 30.2 20.3

M/I Homes, Inc., together with its subsidiaries, engages in the construction and sale of single-family residential homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It also designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, multi-generational, and luxury homebuyers under the M/I Homes brand name. In addition, the company purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. Further, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was founded in 1976 and is based in Columbus, Ohio.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

M/I Homes, Inc. has a Value Score of 85, which is considered to be undervalued.

M/I Homes, Inc.’s price-earnings ratio is 8.0 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes M/I Homes, Inc. more attractive for value investors.

M/I Homes, Inc.’s price-to-book ratio is higher than its peers. This could make M/I Homes, Inc. less attractive for value investors when compared to the industry median at 1.47.

You can read more about M/I Homes, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

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Other Household Durables Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Household Durables stocks as well as other industrys.

Choosing Which of the 6 Best Household Durables Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

  • Hamilton Beach Brands Holding Company stock has a Value Grade of A.
  • Hovnanian Enterprises, Inc. stock has a Value Grade of A.
  • KB Home stock has a Value Grade of A.
  • Leggett & Platt, Incorporated stock has a Value Grade of A.
  • Mohawk Industries, Inc. stock has a Value Grade of A.
  • M/I Homes, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 undervalued stocks in the Household Durables industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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Additional Resources About Household Durables Stocks

Want to learn more about Household Durables stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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