Monday, November 19, 2012

Investopedia: The Third Quarter Was Good To Lowe's

One quarter ago, I said I favored Lowe's (NYSE: LOW) over Home Depot (NYSE: HD), as I thought the difference in valuation outweighed the difference in quality between the two companies. So far, so good with that call, as Lowe's basically doubled Home Depot's return for the past three months. While I do worry that both stocks are a little expensive on the basis of investor optimism for a housing recovery, I won't rule out the idea that an improved business plan coupled with improving sales trends will be a powerful boost to earnings and cash flow for Lowe's over the next few years.


Please continue here:
http://www.investopedia.com/stock-analysis/2012/The-Third-Quarter-Was-Good-To-Lowes-LOW-HD-LPX-WY1119.aspx

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