Thursday, March 6, 2014

Home Depot and Lowe's Equity Research

There was no shortage of reasons for investors to worry before Home Depot and Lowe's Companies gave results recently. The slowdown in the housing market in the second half of 2013 had the market concerned going into the earnings reports. Moreover, some recent lackluster earnings reports from retailers encouraged some investors to conclude that Home Depot and Lowe's would disappoint. In the end, they both delivered sold results. But the question is: What are their prospects going forward?

Home Depot and Lowe's report earnings
As ever with retailers, the key is to follow movements in their comparable-store sales. The latest data confirms that Home Depot is outperforming Lowe's, and it also suggests that growth is slowing for the home-improvement retailer.