Barron’s reported on Sunday that home improvement retailers The Home Depot and Lowe’s are strongly positioned financially going into Spring. Homeowners are undertaking renovations and projects due to a healthier economy and improved real estate markets. Barron’s also states that The Home Depot and Lowe’s are “Amazon-proof” as home improvement is low on the list of categories Amazon is penetrating.
The Home Depot has out-performed Lowe’s over the last several quarters in same-store performance, but Lowe’s is attractive to investors for its lower price-to-earnings ratio. Both retailers are expected to see revenue and stock price increases.
Lowe’s trades at $82, 18 times its $4.62 earnings per share, while The Home Depot trades at $147, 20.4 times its earnings of $7.19 per share.
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Source: Reuters.com