From Dow Jones & Company:

Home Depot Inc. and Lowe’s Cos. stocks dipped in premarket trading after Oppenheimer downgraded them to perform from outperform. The upcoming initial 2024 guidance from Home Depot and Lowe’s could prove unfavorable for their shares. Home Depot is expected to release its fourth-quarter results on Feb. 20, followed by Lowe’s on Feb. 28. Home Depot’s stock fell 0.9% and Lowe’s retreated by about 0.7%. Oppenheimer analyst Brian Nagel cut Home Depot’s price target to $345 a share from $360 and reduced his target for Lowe’s to $230 from $275.

Investors in Home Depot and Lowe’s might want to look for better entry points, as upcoming initial 2024 guidance could prove unfavorable for shares. Home Depot’s stock had risen 14.9% in the past year, and Lowe’s stock has fallen 1.1% in the past year. Home Depot is set to release its fourth-quarter results on February 20, followed by Lowe’s on February 28. Oppenheimer downgraded both stocks to perform from outperform and cut their target prices. The upcoming initial 2024 guidance from Home Depot and Lowe’s could prove unfavorable catalysts for shares. Home Depot’s stock had risen 14.9% in the past year, while Lowe’s stock has fallen 1.1% in the past year. Oppenheimer’s Nagel remains bullish on longer-term prospects for the sector because “structural underpinnings of home improvement retail remain intact.” Upcoming initial 2024 guidance from HD, LOW could prove unfavorable catalysts for shares, analysts said. “Investors looking to play prospects for strengthening trends in the sector, and at HD and LOW, beginning later in 2024, are likely to be presented better entry points, in coming weeks and months,” Nagel said.



Read more: Home Depot and Lowe’s downgraded on ‘cautious’ stance toward home improvement