One of the biggest trends in 2012 was the long-awaited recovery in the housing market. And already in 2013, the housing rebound is shaping up to be one of the biggest trends yet again.
There are a number of housing-related stocks that have been performing quite well as a result. The big home-improvement retailers, for example, are delivering outstanding returns so far in 2013. Home Depot (NYSE:HD) and Lowes (NYSE:LOW) are up 26% and 19%, respectively. Hardwood-flooring retailer Lumber Liquidators (NYSE:LL), which was one of the top-performing stocks of 2012, has seen its shares rise by almost 400% since the beginning of that year. Clearly, some investors are benefiting tremendously from the housing recovery that appears to be gaining momentum.
We feel this long overdue recovery will continue in the coming years, and have identified an underfollowed (and underappreciated) company that should outperform in the current environment. The company is Tile Shop Holdings (NASDAQ:TTS), a fast-growing home-improvement retailer focused on selling tile and tiling accessories. We never thought we could get so excited about tiles.
David Meier has been following this company very closely for a while now, and we thought it might be helpful to share some of his research. To learn more about Tile Shop, just click the arrows within the embedded slideshow below. Alternatively, you can view each of the slides by clicking the link below the slideshow.
David Meier owns shares of Tile Shop Holdings. John Reeves has no position in any stocks mentioned. The Motley Fool recommends Home Depot, Lowe's, Lumber Liquidators, and Tile Shop Holdings. The Motley Fool owns shares of Lumber Liquidators and Tile Shop Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.