The home improvement duopoly has been thriving amid this stay-at-home initiative. Those home projects we “never had time for” before the quarantine have just made their way to the top of priority lists. With summer coming fast, society stuck at home, and Home Depot (HD) and Lowe’s (LOW) remaining open, we have run out of excuses. Is it time to invest in these outperforming stocks? If we want in, how do we decide between LOW and HD?
Should We Still Consider Investing In Home Improvement?
The markets have priced in a good portion of the tailwinds that the “vital” home improvement giants have been a benefactor of. Both LOW and HD have outperformed the broader S&P 500, but have they run up too much? Is this boost in home improvement sales only a temporary jump?
Both Home Depot and Lowes reported year-over-year sales growth in Q1, boosted by the peculiar COVID tailwind. These home improvement stores are some of the few big box stores that were deemed essential by state officials, but there is more to these firms’ success narrative than just being essential amid this health crisis.
Both of these businesses have adopted an omnichannel solution that leverages digital