Lowe’s Stock Undervalued Compared To Home Depot?

Both home improvement retailers in the U.S,  Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD), are riding high on the Covid-19 wave as customers spent more of their disposable cash on home improvement projects rather than on vacations or dining out. But is Lowe’s stock appropriately priced compared to Home Depot stock? We believe that Lowe’s stock is very undervalued compared to HD stock, due to the notable mismatch in their current P/S multiples when compared with revenue growth and operating margins for the two companies over recent years. Lowe’s P/S multiple of 1.5x is substantially lower than the figure of 2.3x for Home Depot.

Lowe’s revenue growth over the last twelve months changed by 18.9{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, which was higher than the figure of 13.2{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} for Home Depot. During the same period, the operating margin for Lowe’s changed by 2.7 percentage points, again better than the change of -0.3 percentage points for Home Depot. Our dashboard Lowe’s vs. Home Depot: LOW stock looks very undervalued compared to HD stock details the full picture based on revenue growth and operating margin – parts of which are summarized below.

1. Revenue Growth

While Home Depot still generates 1.5x more revenues than Lowe’s,

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His gardening stock has always been on the rise : The Tribune India

Sanjiv Kumar Bakshi

Hoshiarpur, January 18

Paramjit Sachdeva, the managing director of Sachdeva Stocks Private Limited, deals in stocks and securities but his love for gardening is the biggest investment he makes in his leisure time.

A lush green garden at his home indicates that he is an ardent nature lover. His place is stocked with various medicinal plants and fruit trees like aloe vera, jamun, guava, amla, tulsi, chikku, lemon, orange, malta, monkey jack and jackfruit. “Mango trees are my favourite and there are 15-16 of different varieties in my garden,” said Sachdeva.

My love for gardening flourished when I shifted to this new house on Jodhamal Road in 2014, and the garden was developed. We have planted different varieties of fruits and vegetables. When this was being built in 2013, the builder came to me and said that there were two old trees which needed to be cut as their space was to be used for raising a part of the building. I called the architect and got the site plan changed accordingly so that the trees could be saved. —Paramjit Sachdeva, MD, Sachdeva Stocks Private Limited

He said that he always had a love for

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Lowe’s Stock Undervalued Compared To Home Depot?

Both home improvement retailers in the U.S, Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD), are riding high on the Covid-19 wave as customers spent more of their disposable cash on home improvement projects rather than on vacations or dining out. But is Lowe’s stock appropriately priced compared to Home Depot stock? We believe that Lowe’s stock is very undervalued compared to HD stock, due to the notable mismatch in their current P/S multiples when compared with revenue growth and operating margins for the two companies over recent years. Lowe’s P/S multiple of 1.5x is substantially lower than the figure of 2.3x for Home Depot.

Lowe’s revenue growth over the last twelve months changed by 18.9{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, which was higher than the figure of 13.2{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} for Home Depot. During the same period, the operating margin for Lowe’s changed by 2.7 percentage points, again better than the change of -0.3 percentage points for Home Depot. Our dashboard Lowe’s vs. Home Depot: LOW stock looks very undervalued compared to HD stock details the full picture based on revenue growth

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Home Improvement Stock Volatility: What Does It Mean?

In the early days of COVID-19 lockdowns, many home improvement companies, from Pool Corporation (NASDAQ: POOL) to Home Depot (NYSE: HD), saw their stock climb. People were determined to make the most of the homes where they were confined, increasing their living space by making outdoor improvements. But the share prices for major outdoor living product companies, including Pool, Azek (NYSE: AZEK) and Trex (NYSE: TREX), have begun to fluctuate noticeably in recent months — no longer riding the steady “stay-home stock” tailwind they were in during the first six months of the pandemic.

What does this volatility indicate?

Conceivably, the jagged rises and drops in stock prices could correlate with ever-changing, unpredictable changes in COVID-19 community rules and future forecasts. If nothing is certain — including income, school schedules, or vaccine rollout — it’s hard to invest heavily in long-term improvement projects.

Why landscape and home improvement stocks surged in the first place

When people realized they’d be home for two, four, or nine months, those who had outdoor space to build out and optimize did so. For city dwellers, this may have been a simple inflatable pool. Those who had more square footage to use dove

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This Home Improvement Stock Is Up 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} This Year, but One Expert Says It’s Worth Buying Now

Low interest rates, more companies allowing (even encouraging) their employees to work from home, and the largest cohort in American history are driving the housing market in a massive way. So far this year that’s been fantastic for Trex (NYSE: TREX), which manufactures environmentally responsible decking out of recycled plastic and waste wood. The company’s stock has surged almost 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} this year alone. 



text: This Home Improvement Stock Is Up 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} This Year, but One Expert Says It's Worth Buying Now


© Provided by The Motley Fool
This Home Improvement Stock Is Up 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} This Year, but One Expert Says It’s Worth Buying Now

Should investors cash out and move on? Not according to one expert. On the Nov. 11 edition of “The Wrap” on Motley Fool Live, host Jason Hall points out the two catalysts — demographics and environmental focus — that he says makes Trex worth buying right now. 

Jason Hall owns shares of Trex. The Motley Fool owns shares of and recommends Home Depot and Trex. The Motley Fool recommends Lowe’s. The Motley Fool has a disclosure policy.

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10 stocks we like better than Trex

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for

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Home Improvement Marketplace Porch Makes Stock Market Debut

Porch has evolved in recent years to become an enterprise software company as well as a consumer-facing marketplace. The firm is the latest to use a merger with a SPAC to go public.

Porch, a real estate technology startup that offers a home improvement marketplace and enterprise software, made its stock market debut Thursday after completing a merger with a “blank check” company earlier this week.

The merger brought together Seattle-based Porch with Los Angeles-based PropTech Acquisition Corporation (PAC). The latter firm is what’s known as a special purpose acquisition company, or SPAC, which is a business that exists to go public and then later merge with a larger firm. Such mergers allow companies like Porch to begin selling shares more quickly and easily than if they went through a conventional initial public offering route.

Matt Ehrlichman

The merger was approved on Monday, which allowed the combined company — which is now named the Porch Group, Inc. — to begin selling shares on the Nasdaq on Christmas Eve. To celebrate, Porch founder and CEO Matt Ehrlichman will virtually ring Nasdaq’s bell Thursday morning to begin the market’s trading for the day.

Mergers with blank check companies have become an increasingly

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Forget Lowe’s, Home Depot Is a Better Home-Improvement Stock

The home-improvement industry has been surging as the coronavirus pandemic has forced so many people to spend more time at home. Not only are they noticing more projects that need to be done, but since the home now needs to be an office, a school, and an entertainment center, they need to upgrade or overhaul existing spaces. On top of all that, data shows that more families are deciding to move out of cities and into suburbs — which means out of apartments and into houses.

While the changes in consumer behavior during the pandemic were good for the home-improvement industry overall, some companies are better equipped to take advantage than others. Here is why Home Depot (NYSE:HD) is a better way to invest in this change than Lowe’s (NYSE:LOW)

A Home Depot storefron.

Image source: Home Depot.

Prospects 

The outlook is bright for both Home Depot and Lowe’s, as consumers’ spending on their homes continues to take a larger share of overall spending. And while vaccinations against the coronavirus are under way, it may be a long time until everything is back to normal. That will give home-improvement retailers several more quarters of substantial revenue increases.

Moreover, one of the lasting consequences

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