Better Stock Buy: Home Depot vs. Lowe's
Wall Street is nervous about a potential recession on the way, and that means there are deals to be had in several parts of the stock market. Discounts are especially tempting in the home improvement industry, which is likely to see a period of depressed earnings results ahead. Both Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) stocks trade in negative territory so far this year compared to a 10% increase in the S&P 500. Those declines boosted yields for these two dividend payers as well.
It might not make sense for most investors to purchase both companies at the risk of becoming too exposed to a single retailing niche. So, let's take a closer look at these discounted stocks to see which one is the better fit for your portfolio.
Home Depot will appeal to investors who don't mind paying up to own a high-performing industry leader. The retailer routinely beats Lowe's on growth, for example by expanding sales by 3% last year compared to Lowe's 1% decline.
Source Fool.com
