FIXING UP THE HOUSE
FIXING UP THE HOUSE
Analysts who believe the worst of the housing slump has passed are pounding the table for Home Depot (HD), now at 27.21 a share, and Lowe's (LOW), 22.81. Both are huge in the building materials and home improvement trade. While home prices keep falling, "year-to-year declines have started to moderate," says Peter Benedict of securities firm Robert W. Baird (it seeks to do business with Home Depot and Lowe's), which rates both outperform.
Larry Haverty of Gabelli Global Multimedia Trust agrees now is an "opportune time" to buy the depressed shares of Home Depot and Lowe's. Homeowners are again fixing their places as the economy picks up and housing turnover improves.
Of the two home chains, Scott Aminger, portfolio manager at Christiana Bank & Trust, favors Lowe's for its faster growth prospects. He sees the stock at 35 a share in a year.
Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
Copyright 2009  BusinessWeek
