Thanks to two mega trends sweeping the United States, the home improvement market is exploding in popularity all across the country.

#-ad_banner-#With Americans beginning to rely more heavily on cost-savings options and push for greater sustainability, do-it-yourself (or DIY) projects have never been more popular.

In 2014, the U.S. home improvement products market was worth an estimated $313.5 billion, up 5.9% from the prior year, according to market statistics firm Statista.

Many investors would see this as a time to run out and buy shares of  big box-store company’s like Home Depot or Lowe’s. But with the two giants battling over home-improvement supremacy, there’s no telling which powerhouse retailer will ever come out on top.

So instead, I’ve found three companies profiting from the DIY trend in a huge way. And these market-beaters have all the fundamentals necessary to keep showering you with big returns for years to come.

The Sherwin-Williams Co. (NYSE: SHW)
Sherwin-Williams is the largest producer of paints and coatings in the United States and the third largest in the world. The company estimates that more than 90% of the U.S. population lives within a 50 mile radius of one of its 3,654 domestic locations.

While Sherwin-Williams sells other products like wood finish and rust protector, nearly 60% of total sales are derived from paint products. And as of late, business has been booming, with the firm beating earnings estimate each of the last four quarters.

SHW has boosted its revenue every year since 2009, and its bottom-line and net margins have both increased each year since 2011, up a total of 96% and 54%, respectively, over that period.  

Income investors will also love the fact that SHW is on the exclusive list of 54 companies in the S&P that have raised their dividend every year for at least the past 25 years. In the last decade alone, shareholders have been treated to a 227% dividend increase from the company. Currently, the firm pays $2.68 a share, or a yield of 0.9%.

Its shares have followed suit, delivering a 657% gain over the past ten years, compared to the S&P 500’s 74% return.

Stanley Black & Decker, Inc. (NYSE: SWK)
SWK has one of the most impressive collections of hardware and tool brands you’ll find anywhere. STANLEY Tools, DeWALT, BLACK + DECKER and Porter Cable all fall under the SWK umbrella and help make it the largest tool manufacturer in the world.

The company operates three unique business units: industrial, security and construction/do-it-yourself. In 2013, its DIY segment saw 6% overall growth, with a $300 million increase in revenue from new product introductions.

Over the past decade, SWK’s share price has nearly tripled — up 176% — outperforming the S&P 500 by 102% over the same period. In terms of industry performance, the company’s 13.6% return-on-equity is more than 40% higher than the industry average.

Despite strong financials, shares of SWK are undervalued at a price-to-earnings, or P/E, ratio of 15.4. That’s a fairly nice discount to the industry’s average 24.4 P/E ratio over the trailing twelve months.

As more people take on home improvement projects, SWK will benefit. Its diverse and massive collection of popular tool brands will give it a leg up on competitors that rely on a singular brand, such as Sears with Craftsman.

Over each of its last four reported quarters, SWK has increased its year-over-year revenues by an average of 19.8%. And in its most recently reported quarter — Q3 2014 — the company’s year-over-year net profits soared an impressive 42.8%. 

Q4 is naturally the company’s most profitable quarter each year, and when those figures are released it will be interesting to note how well SWK did during this recent shopping season. Now may be your best chance to buy shares at its current discount.

WD-40 Co. (Nasdaq: WDFC)
It’s been called the “most useful product in America.” While WD-40 may not be in a position to disproportionately profit from home-renovation projects, the company’s lubricant is used in eight-out-of-10 U.S. households on cars, squeaky door hinges and countless other do-it-yourself jobs.

This sort of powerful brand recognition gives WD-40 a wide economic moat. As the DIY trend continues to grow steam, consumers will go to the brand they know and trust.

Sales of WD-40 have nearly doubled over the last decade and management plans to consistently post 6%-to-8% annual growth over the long-term. While that may not be a jaw dropping number, the company has proven this growth sustainable over the years, making the stock an attractive potential addition to any long-term portfolio.

Revenue has grown each year since 2009, and its 11.2% profit margins are an astounding 24% higher than the industry average. It’s no surprise shares of WDFC have soared more than 187% in the last five years, crushing the market in the process.

Risks To Consider: As the home improvement trend grows, market saturation could present difficulties for each of these companies if consumers begin leaning toward even newer or lower priced options.

Action To Take –> Whether you’re looking for consistent dividend income, an undervalued gem or a company with a wide-economic moat, I advise buying shares of one — or more — of these companies as they all look poised to benefit from the massive trend toward DIY home improvement projects.

Profiting from a mega-trend — like DIY — is one way to find under-the-radar investments that could deliver you market-beating gains. It’s how our resident growth expert Andy Obermueller found 23 stocks have gained 100% or more in just the past few years. But a recent trend he’s been focused on — the $11 trillion untapped market that Apple could soon open up — might just deliver his biggest returns yet. Find out which little-known companies are set to profit most from this mega-trend by reading Andy’s latest research here.