The housing market is showing signs of recovery in 2026, with easing interest rates and home prices leading to improvements. Companies like D.R. Horton, Lowe’s, and Whirlpool are well-positioned to benefit from these trends, with stock prices expected to trend higher as businesses grow and drive capital returns for investors.

D.R. Horton, the largest homebuilder in the US, is facing revenue pressure in 2025 due to falling home prices. Despite this, volume growth is sustaining cash flow and capital return programs, including buybacks and dividends. The company’s stock price is expected to increase in 2026, supported by reliable capital returns.

Lowe’s fiscal Q3 release highlighted resilience compared to Home Depot, with growth in the professional contractor market. The acquisition of Foundation Building Materials supports this growth. Share repurchases are expected to resume in 2026, and the company offers an attractive dividend yield that is expected to grow annually.

Whirlpool’s stock price is trading near long-term lows, but a rebound may be on the horizon. The company’s dividend yield is solid at nearly 5%, and the payout ratio is reasonable. Earnings growth is forecasted to resume in 2026, and analysts predict a 15% upside at the consensus. Institutional activity supports a solid base for the stock in 2026.

Read more at Nasdaq.: These 3 Housing Stocks Are Laying the Foundation for a Comeback