From Nasdaq: 2024-12-02 07:00:00

Lowe’s and Home Depot, consumer cyclical home improvement giants, are enjoying strong momentum. Both stocks have similar year-to-date performances and are breaking out of bullish consolidations, solidifying their positions as sector leaders with favorable tailwinds and strong momentum.

Home Depot, dominating the sector, reported strong Q3 earnings with EPS of $3.78 and revenue of $40.22 billion, beating estimates. The company raised its full-year sales growth outlook to 4% due to increased demand from hurricane-related recovery efforts. Analysts give the stock a Moderate Buy rating, with positive sentiment driving a technical breakout.

Lowe’s, the second-largest home improvement chain globally, demonstrated resilience in recent earnings despite negative same-store sales growth. The company posted revenue of $20.17 billion and adjusted EPS of $2.89, exceeding expectations. Challenges include a reliance on DIY shoppers and low housing turnover affecting demand for home improvement projects.

Lowe’s and Home Depot are well-positioned for further upside, with improving market sentiment driving bullish momentum. Despite challenges like elevated interest rates and housing affordability concerns, recent price action suggests optimism for a favorable shift in conditions. The market anticipates brighter days ahead for these home improvement giants as they break out of consolidation.



Read more at Nasdaq:: 2 Home Improvement Leaders Building Momentum for Upside